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.