Please step by step tell me why choose D. (Please type the answer)

21. On July 1, 20A, Goode Company borrowed $10,000. The company signed a note payable with interest at 12 percent per year. The note and interest are due on December 31,20A, On December 31, 20A, Goode paid $10,600 to settle the debt in full. Transaction analysis of the $10,600 cash payment on December 31, 20A, should reflect the following: A) decrease assets, $10,600; decrease liabilities, $10,600. B) decrease assets, $10,000; decrease stockholders' equity, $600; and decrease liabilities, C) decrease stockholders' equity, $10,000; decrease liabilities, S600; and decrease assets, D) decrease liabilities, S10,000; decrease stockholders' equity, $600; and decrease assets, E) None of the above is correct. $10,600. $10,600 $10,600