Starting on December 21, Year One, the Shakespeare Corporation begins to incur an expense of $1,000 per day. On January 21, Year Two, the company makes a payment of $31,000. The company made the proper adjusting entry at December 31. When the payment was eventually made, what account or accounts were debited?

1. a.) Expense was debited for $31,000.
2. b.)A liability was debited for $31,000.
3. c.) Expense was debited for $11,000, and a liability was debited for $20,000.
4. d.) Expense was debited for $20,000, and a liability was debited for $11,000.