QUESTION 12 On October 1, 2020 Sue's Carpet Service borrows $125,000 from the Bank on a 3-month, $125,000, 8% note. What entry must Sue's Carpet Service make on December 31 before financial statements are prepared? Interest Payable......... 2,500 O Interest Expense... 2,500 Interest Expense..... 2,500 Notes Payable... 2,500 Interest Expense..... 10,000 Interest Payable. 10,000 Interest Expense. 2,500 Interest Payable 2,500