10 On November 1, Year 1, Waldo Company borrowed $80, 000 from Presidents Bank and signed a 12%, six-month note payable, all due at maturity. The interest on this loan is stated separately. At December 31, Year 1, the adjusting entry with respect to this note includes a

a) Credit to Interest Payable for $1, 600

b) Credit to Notes Payable for $1,600

c) Credit to Cash for $3,200

d) Debit to Interest Expense for $3,200