On May 22,Jarrett Company Borrows $7,500 from Fairmont Financing,signing a 90-Day,8%,$7,500

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