Uncle Tupelo's Gifts Signs a Three-Month Note Payable to Help $\quad$

Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?

A) Interest Expense. $\quad$ 1,500
Interest Payable $\quad$$\quad$ 1,500
B) Interest Expense $\quad$ 2,250
Interest Payable $\quad$ 2,250
C) Interest Expense $\quad$ 1,500
Cash $\quad$ 1,500
D) Interest Expense $\quad$ 1,500
Notes Payable $\quad$ 1,500