Question 40 (2 points) On January 1, Sewell Corporation issues $3,000,000, 5-year, 12% bonds at 96 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a 1) debit to Interest Expense, $180,000. 2) debit to Interest Expense, $360,000, 3) credit to Discount on Bonds Payable, $24,000. 4) credit to Discount on Bonds Payable, $12,000