Hawk issued $500,000 of its ten-year 5% bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1. Refer to Exhibit 14-10. Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017, would include (rounded to the nearest dollar)

a debit to Interest Expense for $11,580.

a credit to Cash for $12,500.

a debit to Discount on Bonds Payable for $1,396.

a credit to Discount on Bonds Payable for $1,396.