Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
Pluto Co.borrowed $25,000 on September 1, 2010 on a nine-month, 8% note.Interest and principal are due at maturity.
-The entry to record the transaction on September 1, 2010 would include a:

A) Debit to cash for $23,148
B) Credit to short-term notes payable for $25,000
C) Debit to interest expense for $1,500
D) Credit to interest payable for $1,852