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On October 1, Mead borrowed $10,000 from Miller in exchange for a 4 month, 9%...

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Accounting

On October 1, Mead borrowed $10,000 from Miller in exchange for a 4 month, 9% Note Payable, with both principle and interest payable at maturity. Mead prepares annual financial statements on December 31 of each year. At the end of 4 months, when the Note Payble matures, the entry to record the payment of the Note will do which of the following?

a. Decrease Interest Payable by $75

b. Decrease Interest Payable by $300

c. Increase Interest Expense by $75

d. Increase Interest Expense by $300

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