On October 1, 2015, Attra Inc. borrows $207,000 on a three-year note that requires the company to pay 12% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit:

Interest Expense and credit Interest Payable for $6,210.

Interest Expense and credit Cash for $12,420.

Interest Payable and credit Interest Expense for $6,210.

Interest Expense and credit Interest Payable for $12,420.