Edson Corp. signed a three-month, zero-interest-bearing note on November 1, 2008 for the purchase of $150,000 of inventory. The face value of the note was $152,205. Assuming Edson used a "Discount on Note Payable" account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2008 will include a
A) debit to Discount on Note Payable for $735.
B) debit to Interest Expense for $1,470.
C) credit to Discount on Note Payable for $735.
D) credit to Interest Expense for $1,470.