A company has bonds outstanding with a face value of $100,000. The unamortized premium on these bonds is $2,700. If the company retired these bonds at a call price of 99, the journal entry to record this retirement includes:

A. a debit Bonds Payable for $100,000, and credit to gain on retirement of bonds payable for $3,700.

B. a debit Bonds Payable for $100,000 and a credit to Gain on Bond Retirement for $1,000.

C. a debit to Bonds Payable for $99,000 and a credit to Cash for $100,000

D. a debit Bonds Payable for $100,000, a debit to Loss on Bond Retirement for $3,700, and a credit to Cash for $100,000.

E. None of these answers is correct.