On October $1,$ Eli's Carpet Service borrows $250,000$ First Bank on a $3-$month, $125,000,8\%$ note. The fiscal year of Eli's Carpet Service ends on December $31.$ Eli's Carpet Service record payment of the note and accrued interest on January $1,2021.$ The journal entry on January $1,2021$ by Eli's Carpet Service is:

Choose one:

a$.$

Notes Payable $255,000$

Interest Expense $5,000$

Cash $250,000$

b$.$

Notes Payable $255,000$

Cash $255,000$

c$.$

Notes Payable $250,000$

Interest Expense $5,000$

Cash $255,000$

d$.$

Notes Payable $250,000$

Interest Payable $5,000$

Cash $255,000$