On December 31, your firm borrows $10,000 from the Ajax Bank, signing a 6-month note at 8% interest per year. How do you record this transaction?

A. Cash $9,600

Notes Payable $9,600

B. Cash $10,000 and Interest Expense $ 400

Notes Payable $10,400

C. Cash $10,000

Notes Payable $10,000

D. Cash $10,000 and Interest Expense $400

Notes Payable $10,000 and Interest Payable $400