On October 1, 2001, MarCo signs a one-year, 8% note payable for $10,000 with principle and interest due on October 1, 2002. It is MarCo's only note outstanding. On October 1, 2002 when the note is paid, MarCo debits Notes Payable and credits Cash for $10,800, the sum of principle and interest. This error is likely to be found because...

A) the bank reconciliation will be out of balance when the check clears

B) the trial balance will be out of balance by $800

C) the trial balance will show a balance in Notes Payable that is not normal

D) interest expense will be understated