On December 1,Miller Company Borrowed $300,000,at 8% Annual Interest,from the Nomo

On December 1,Miller Company borrowed $300,000,at 8% annual interest,from the Nomo Bank.Miller has 60 days before the first payment is required.What is the adjusting entry that Miller would need to make on December 31,the calendar year-end?

A) debit Interest Payable, $2,000; credit Interest Expense, $2,000
B) debit Interest Expense, $2,000; credit Interest Payable, $2,000
C) debit Interest Expense, $2,000; credit Cash, $2,000
D) debit Interest Expense, $4,000; credit Interest Payable, $4,000.
E) debit Interest Expense, $24,000; credit Interest Payable, $24,000.