On July 1, 2013, Avery Services issued a 4% long-term note payable for $10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Which of the following entries needs to be made at July 1, 2013 to reclassify the current portion of the note?

Select one:

A.

Long-term notes payable	2,000
Cash		2,000

B.

Current portion of long-term notes payable	2,000
Long-term notes payable		2,000

C.

Long-term notes payable	2,000
Accounts payable		2,000

D.

Long-term notes payable	2,000
Current portion of long-term notes payable		2,000