On November 1, Luna Borrowed from Lumos, Giving Him a $36,000

On November 1, Luna borrowed from Lumos, giving him a $36,000, 3 month, 9% note, interest payable at maturity. Luna made no entry after November 1.
What entry would Luna make on December 31, the end of the accounting period?

A) Interest Payable 540
$\quad$ $\quad$ $\quad$ $\quad$ Interest Expense 540
B) Interest Expense 540
$\quad$ $\quad$ $\quad$ $\quad$ Interest Payable 540
C) Interest Expense 540
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Cash 540
D) Interest Expense 540
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Discount on Notes Payable 540