On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $15,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?
Debit Notes Payable $15,000; debit Interest Payable $250; credit Cash $15,250.
Debit Cash $15,250; credit Notes Payable $15,250.
Debit Notes Payable $15,500; credit Interest Payable $250; credit Interest Expense $250; credit Cash $15,000.
Debit Notes Payable $15,000; debit Interest Payable $250; debit Interest Expense $250; credit Cash $15,500.
Debit Notes Payable $15,000; debit Interest Expense $500; credit Cash $15,500.