Madison Bank lends Neenah Paper Company $120,000 on January 1 of the current year. Neenah signs a $120,000, 10%,6 - month note. The joumal entry made by Neenah on January 1 of the current year will debit: A. Interest Expense for $12,000 and credt Cash for $12,000. B. Cash for $108,000 and credin Note Payable for $108,000 C. Interest Expense for $12.000 and credit interest Payabie for $12,000. D. Cash for $120,000 and credt Fotes Payable for $120,000. Mariano Corporation sells 7,000 units of inventory during the first year of operations for 5700 each. Mariano provides a one -year warranty on parts. It is estimated that 3% of the units will be defective and that repair costs are estimated to be $70 per unit. In the year of sale, warranty contracts are honored on 90 units for a total cost of $6,300. What amount will be reported as Accrued Warranty Payable at the end of the year?l. A. $6,300 B. $13,230 C. $14,700 D. $8.400