Wisconsin Bank lends Local Furniture Company $70,000 on November 1. Local Furniture Company signs a $70,000, 12%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is:

A. debit Interest Expense and credit Cash for $1,400

B. debit Interest Expense and credit Interest Payable for $1,400

C.debit Interest Payable and credit Cash for $1,400

D.debit Interest Payable and credit Interest Expense for $ 1400