On January 1, Year 1. Stratton Company borrowed $300,000 on a 10-year, 6% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $40,760 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31. Year 2 is: Multiple Choice O Debit Notes Payable $40,760: credit Cash $40,760. O Debit Notes Payable $18,000; debit Interest Expense $22.760: credit Cash $40,760. O Debit Interest Expense $16,634: debit Notes Payable $24,126: credit Cash $40.760. O Debit Notes Payable $300,000; debit Interest Expense $10,760; credit Cash $40,760. O Debit Interest Expense $18,000. debit Notes Payable $22760; credit Cash $40,760