On January 1, Swifty Corporation issues $3500000, 5-year, 12% bonds at 95 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

debit to Interest Expense, $210000.

credit to Discount on Bonds Payable,

$17500. debit to Interest Expense, $420000.

credit to Discount on Bonds Payable, $35000.