Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month...

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Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, its fiscal year-end, is A. debit Interest Payable and credit Cash for $2,500. B. debit Interest Expense and credit Cash for $2,500. C. debit Interest Payable and credit Interest Expense for $2,500. D. debit Interest Expense and credit Interest Payable for $2,500. O O Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, its fiscal year-end, is A. debit Interest Payable and credit Cash for $2,500. B. debit Interest Expense and credit Cash for $2,500. C. debit Interest Payable and credit Interest Expense for $2,500. D. debit Interest Expense and credit Interest Payable for $2,500. O O