On April1, 2019, Maudlin Sales purchased inventory for $80,000 by signing aone-year notepayable, due March31, 2020. The note bears interest at an annual rate of8%.

What is the correct adjusting journal entry on December31, 2019?

A.

Interest Expense

4,800

Interest Payable

4,800

B.

Interest Expense

5,184

Interest Payable

5,184

C.

Interest Revenue

4,800

Interest Payable

4,800

D.

Interest Receivable

4,800

Interest Revenue

4,800