On January 1, BBA borrows $192,000 from Citizen Bank. The loan is due in one year along with APR of 8% interest. The company is preparing its quarterly report for March 31. Which of the following best describes the necessary accrual for interest expense?

A) $ 920 increase liabilities, increase interest expenses B) $ 920 decrease liabilities, decrease cash C) $1,840 decrease liabilities, decrease cash D) $1,840 increase liabilities, increase interest expenses