Discountco signed a 9-year note payable on January 1, 2018, of $540,000. The note requires annual principal payments each December 31 of $60,000 plus interest at 10%. The entry to record the annual payment on December 31, 2021, includes

Discountco signed a 9-year note payable on January 1, 2018, of $540,000. The note requires annual principal payments each December 31 of $60,000 plus interest at 10%. The entry to record the annual payment on December 31, 2021, includes

A. a credit to Cash of $114.000.

B. a credit to Notes Payable for $60,000.

C . a debit to Interest Expense for $54,000.

D.  a debit to Interest Expense for $36,000.