On August 1, a $54,000, 8%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $20,953.81. The entry to record the first payment on July 31 would include:

• a Debit to Notes Payable of $20,953.81
• b Debit to Interest Expense of $4,320.00.
• c Debit to Cash of $20,953.81.
• d Credit to Notes Payable of $20,953.81
• e Credit to Cash $16,633.81