2. On September 1, 2018, Davis Co. issued a note payable to National Bank in the amount of $2,100,000, bearing interest at 10%, and payable in three equal annual principal payments of $700,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal is scheduled for September 1, 2019. At December 31, 2018, Davis should record accrued interest payable of $58,000 $54,000. $64,000. $70,000 a. b. C. d