On December 13, Gilmore Company issued a 90 - day, 10% note payable with a face value of $25,000 in exchange for $25,000 cash. The adjusting entry prepared on December 31 would include a: A. Debit to interest payable for $500 B. Credit to interest expense for $125 C. Debit to interest receivable for $500 D. Credit to cash for $500 E. Debit to interest expense for $125 F. Debit to interest expense for $12.50