On January 1, 2015, ABC Inc. issued $100,000 in bonds payable with an interest coupon of 10%. Since the market rate of interest was close to 12%, Y. Knott had to issue the bonds at 94 (that is, the cash received was 94% of face amount). The bonds pay annual interest on January 1stof each year starting 1/1/2016 and principle is due in full on 1/1/2018. The company uses the straight-line method to amortize bond discounts and premiums.The journal entry for the retirement of the bonds payable includes a:

A. None of the other answers are correct

B. Debit to retained earnings

C. Debit to discount on bonds payable

D. Debit to premium on bonds payable