Assume a business records a journal entry that, among other things, debits both notes payable and interest expense. Choose the item that most accurately and completely describes this situation.

a. The business is recording the purchase of an asset financed by issuing debt

b. The business is generating funds by borrowing money

c. The business is issuing a note to replace an account payable

d. The business is recording an interest payment

e. The business is recording interest accrued at the end of an accounting period

f. The business is recording the payment made on the maturity date of a note