On 1 September Carlson Ltd Borrowed $10,000 from the Bank

On 1 September Carlson Ltd borrowed $10,000 from the bank for three months at the annual interest rate of 9%. Principal and interest are payable to the bank on 1 December. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on 30 September, would be:

A) Debit Interest expense, $900; Credit Interest payable, $900.
B) Debit Interest expense, $300; Credit Interest payable, $300.
C) Debit Promissory note payable, $900; Credit cash, $900.
D) Debit Interest expense, $75; Credit Interest payable, $75.