On January 1, 2017, Trinity Company loaned $901,560 to Litton Industries in exchange for a 3 year, zero-interest-bearing note with a face amount, $1,200,000. The prevailing rate of interest for a loan of this type is 10%. The adjusting journal entry made by Litton at December 31, 2017 with regard to the note will include:___.

a. a credit to Interest Payable for $60,000.

b. a credit to Discount on Notes Payable for $90,156.

c. a debit to Interest Expense for $120,000.

d. a debit to Interest Expense for $29,850.