On October 1, Eli's Carpet Service borrows $125,000 from First District Bank on a 3-month, $125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared? shpayable. 2,500 Select one: a. Interesh payable........... Interest Expense b. Interest Expense.... Interest Payable...... O C. Interest Expense..... Interest Payable od. Interest Expense....... Notes Payable...... 2,500 2,500 2,500 10,000 10,000 2,500 2,500