On September 1, Bannon's Carpet Service borrows $120,000 from Third Chicago Bank on a 6-month, $120,000, 8% note. What entry must Bannon Carpet Service make on December 31 before financial statements are prepared? a. Interest Payable 9,600 Interest Expense. 9,600 b. Interest Expense 9,600 Interest Payable. 9,600 c. Interest Expense 3,200 Notes Payable 3,200 d. Interest Expense 3,200 Interest Payable.. 3,200