Question 2 Not yet answered Marked out of 1.5 Flag question On October 1, Eli's Carpet Service borrows 125,000 from First Bank on a 3-month, 125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared? Select one: a. Interest Expense Interest Payable 2,500 2,500 2,500 Ob. Interest Payable Interest Expense 2,500 2,500 Interest Expense Notes Payable 2,500 10,000 O d. Interest Expense Interest Payable 10,000