On September $1,$ Kennedy Company loaned $$120,000,$ at $8\%$ annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year$-$end, what is the adjusting entry for accruing interest that Kennedy would need to make on December $31,$ the calendar year$-$end?

Multiple Choice

Debit Interest Expense, $$9,600$; credit Interest Payable, $$9,600.$

Debit Interest Expense, $$3,200$; credit Interest Payable, $$3,200.$

Debit Interest Receivable, $$9,600$; credit Cash, $$9,600.$

Debit Interest Receivable, $$3,200$; credit Interest Revenue, $$3,200.$

Debit Cash, $$3,200$; credit Interest Revenue, $$3,200.$