London Company paid Frankfurt Company for merchandise with a $3,200, 90-day, 8% note dated May 10. If London Company pays the note at maturity, what entry should be made at that time?

A. Notes Payable 3,264 Interest Payable 64 Cash 3,200
B. Cash 3,264 Notes Payable 64 Interest Payable 3,200
C. Notes Payable 3,200 Interest Expense 64 Cash 3,264
D. Notes Payable 3,200 Interest Expense 64 Cash 3,136
E. None

Ans: C. Notes Payable 3,200 Interest Expense 64 Cash 3,264