On January 1,2013,Merrill Company Borrowed $100,000 on a 10-Year,7% Installment

On January 1,2013,Merrill Company borrowed $100,000 on a 10-year,7% installment note payable.The terms of the note require Merrill to pay 10 equal payments of $14,238 each December 31 for 10 years.The required general journal entry to record the first payment on the note on December 31,2013 is:

A) $$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 7,238 & \\\hline \text { Interest expense } & 7,000 & \\\hline \text { Cash } & & 14,238 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 7,000 & \\\hline \text { Interest expense } & 7,238 & \\\hline \text { Cash } & & 14,238 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 10,000 & \\\hline \text { Interest expense } & 7,000 & \\\hline \text { Cash } & & 17,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 14,238 & \\\hline \text { Cash } & & 14,238 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Notes Payable } & 10,000 & \\\hline \text { Interest expense } & 4,238 & \\\hline \text { Cash } & & 14,238 \\\hline\end{array}$$