On January $1,2025,$ Bramble Company loaned $$900100$ to Ayayai Industries in exchange for a $3$ year, zero$-$interest$-$bearing note with

a face amount, $$1210000.$ The prevailing market rate of interest for a loan of this type is $9\%.$ The adjusting journal entry made by

Ayayai at December $31,2025$ with regard to the note will include

a debit to Interest Expense for $$108900.$

a credit to Interest Payable for $$54450.$

a credit to Discount on Notes Payable for $$81009.$

a debit to Interest Expense for $$27891.$