On October 1, 2015, Attra Inc. borrows $209,000 on a three-year note that requires the company to pay 8% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit:

Interest Payable and credit Interest Expense for $4,180.

Interest Expense and credit Interest Payable for $8,360.

Interest Expense and credit Cash for $8,360.

Interest Expense and credit Interest Payable for $4,180.