The following are several transactions of Time Traveler Company that occurred during the current year and were recorded inpermanentaccounts unless indicated otherwise. Time Traveler's fiscal year ends on December 31.

Date		Transaction
April	1	Purchased a delivery van for $30,000, paying $6,000 down, and
		issuing a 1-year, 8% note payable for the $24,000 balance. It is
		estimated that the van has a 4-year useful life and a $3,000 residual
		value; Archery uses straight-line-depreciation. Interest on the note
		will be paid at maturity.
May	15	Purchased $850 of office supplies on credit
June	2	Purchased a 2-year insurance policy for $960
Aug.	1	Received 8 months of rent in advance at $250 per month and
		recorded the receipt as Rent Revenue
Sept.	15	Advanced $2,800 to sales personnel for future travel costs
Nov.	1	Accepted a $6,000, 6-month, 12% note receivable from a
		customer, the interest to be collect when the note is collected

The following information also is available:

• On January 1, the Office Supplies account had a $350 balance. On December 31, an inventory count showed $160 of office supplies on hand.
• The weekly (5-day; Monday-Friday) payroll of Archery Company amounts to $3,000. All employees are paid at the close of business each Wednesday. The current fiscal year ends on a Tuesday.
• Sales personnel travel cost reports indicate that $1,330 of advances had been used to pay travel expenses.
• The income tax rate is 30% on current income and is payable in the first quarter of next year. The pretax income before the adjusting entries is $11,635.

Which of the followingadjustingentries would Time Traveler Company record at the end of the current year?

a. A credit to Interst Payable for $1,440

b. A debit to Salaries Expense for $1,200

c. A debit to Cash for $6,000

d. A credit to Sales Expense for $1,330