On October 1, Nash's's Painting Service borrows $96000 from National Bank on a 3-month, $96000, 4% note. The entry by Nash's's Painting Service to record payment of the note and accrued interest on January 1 is

Notes Payable 96000 Interest Payable 3840 Cash 99840

Notes Payable 96000 Interest Expense 960 Cash 96960

Notes Payable 96000 Interest Payable 960 Cash 96960

Notes Payable 96960 Cash 96960