On October 1, Crane's Painting Service borrows $300000 from National Bank on a 3-month, $300000, 3% note. The payment of the note and accrued interest on January 1 by Crane's Painting Service includes a(n)

Decrease to Notes Payable and to Cash for $302250.

Decrease to Notes Payable for $300000, and a decrease to Interest Payable for $9000 and a decrease to Cash for $309000.

Decrease to Notes Payable for $300000, decrease to Interest Payable for $2250, and a decrease to Cash for $302250.

Decrease to Notes Payable for $300000, an increase to Interest Expense for $2250 and a decrease to Cash for $302250.