On December 1, Alan Company signed a 90-day, 9% note payable, with a face value of $10,000. Alan records interest accruals on an annual basis. What is the journal entry to record the payment of the note plus interest on the maturity date assuming no reversing entry was made? (Use 360 days a year.)

Group of answer choices

Debit Notes Payable $9,240; debit Interest Payable $225; credit Cash $10,225.

Debit Notes Payable $10,000; debit Interest Payable $150; debit Interest Expense $75; Cash $10,225.

Debit Notes Payable $10,000; debit Interest Payable $75; debit Interest Expense $150; Cash $10,225.

Debit Notes Payable $9,000; debit Interest Expense $225; credit Cash $10,225.