Castle financed the purchase of a delivery truck by borrowing cash from E-Z Credit on January 1. The annual interest on this loan is $750 payable on January 1 of each year. What is the adjusting entry to accrue interest on December 31 at fiscal year end?

A) debit Interest Expense $750; credit Interest Payable $750

B) debit Interest Income $750, credit Interest Payable $750

C) debit Interest Expense $750; credit Cash $750

D) debit Interest Payable $750; credit Interest Expense $750

PLEASE EXPLAIN IN DETAIL, THANKS IN ADVANCE!