Justin and his brother Tom decide that, despite the ongoing pandemic, they should totally open up a taco food truck in Austin. They opt to follow the accrual method of accounting. Their company, JT Inc., borrowed $100,000 from the bank on May 1, 2020. The note had a 12 percent annual rate of interest and matures on April 30, 2021. The note is considered short term debt (since it's only for one year). Assume Interest and principal will be paid in cash on the maturity date How much CASH was paid for interest in Year 1 on December 31st? O 8,000 O 7,000 O 1,000