On October 1,2011 , Pennington Company Issued A $€ 40,000,10 \%$

On October 1,2011 , Pennington Company issued a $€ 40,000,10 \%$ , nine-month interestbearing note. If the Pennington Company is preparing financial statements at December 31, 2011, the adjusting entry for accrued interest will include a:

A) credit to Notes Payable of $€ 1,000$ .
B) debit to Interest Expense of $€ 1,000$
C) credit to Interest Payable of $€ 2,000$ .
D) debit to Interest Expense of $€ 1,500$ .