Choice Company calculates that interest of $3,600 has accrued at December 31 on outstanding notes payable. How should Choice record this on December 31?

Select one: a. Interest Expense 3,600 Interest Payable 3,600 b. Prepaid Interest 3,600 Interest Expense 3,600 c. Interest Payable 3,600 Interest Expense 3,600 d. Interest Expense 3,600 Cash 3,600