Assume that on 1St Oct 2021 a company borrowed SAR 35,000 from the Albilad Bank by signing a 12-mont

zero-interest-bearing SAR 41,000 note. The necessary journal entry for interest on 31st Dec 2021 would be:

O a. Debit interest expense SAR 3,500 and credit notes payable SAR 3,500

O b. Debit interest expense SAR 1,500 and credit notes payable SAR 1,500

O c. Debit interest expense SAR 6,000 and credit notes payable SAR 6,000

O d. Debit interest expense SAR 4,500 and credit notes payable SAR 4,500