On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $18,000. Alan made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made? (Use 360 days a year.)

Multiple Choice

• Debit Notes Payable $18,000; debit Interest Expense $540; credit Cash $18,540.

• Debit Notes Payable $18,000; debit Interest Payable $270; debit Interest Expense $270; credit Cash $18,540.

• Debit Cash $18,270; credit Notes Payable $18,270.

• Debit Notes Payable $18,540; credit Interest Payable $270; credit Interest Expense $270; credit Cash $18,000.

• Debit Notes Payable $18,000; debit Interest Payable $270; credit Cash $18,270.