On August 1, a $39,600, 8%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $15,366.13. The entry to record the first payment on July 31 would include:

Multiple Choice

Debit to Notes Payable of $15,366.13

Debit to Interest Expense of $3,168.00.

Debit to Cash of $15,366.13.

Credit to Notes Payable of $15,366.13

Credit to Cash $12,198.13