A Company Has $1,000,000 in Variable Rate Debt, at a Current

A company has $1,000,000 in variable rate debt, at a current rate of 2.5%. The rate is reset annually, and interest is due at the time the rate is reset for the following year. For the current year, the company swaps its variable payments for fixed payments of 2.3%. At the end of the current year, the company makes the variable rate payment of $25,000. For the net receipt/payment of $2,000 on the swap, the company

A) Credits cash and debits loan payable.
B) Debits cash and credits loan payable.
C) Credits cash and debits investment in swap.
D) Debits cash and credits investment in swap.