On October 1 2016 Pennington Company Issued an $800000 10

On October 1 2016 Pennington Company issued an $800000 10% nine-month interest-bearing note. Assuming interest was accrued in June 30 2017 the entry to record the payment of the note on July 1 2017 will include a:

A) debit to Interest Expense of $20000.
B) credit to Cash of $800000
C) debit to Interest Payable of $60000.
D) debit to Notes Payable of $860000.