On December 16,an 11%,60-Day,$2,000 Note Was Issued by Carmen

Multiple Choice

On December 16,an 11%,60-day,$2,000 note was issued by Carmen.What entry does Carmen make on December 31 to recognize the interest?

A) Debit Interest Expense; credit Interest Payable $9.17
B) Debit Interest Payable; credit Interest Expense for $9.17
C) Debit Interest Receivable; credit Interest Income for $9.17
D) None of these answers are correct.