On May 22, Jarrett Company Borrows $7,500 from Fairmont Financing

Multiple Choice

On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note.
-What is the journal entry needed to record the payment of the note by Jarrett Company on the maturity date?

A) Debit Cash $7,650; credit Interest Revenue $150; credit Notes Receivable $7,500.
B) Debit Notes Payable $7,500; credit Cash $7,500.
C) Debit Notes Payable $7,500; credit Interest Expense $150; credit Cash $7,350.
D) Debit Notes Payable $7,500; debit Interest Expense $150; credit Cash $7,650.
E) Debit Notes Payable $7,650; credit Cash $7,650.