Question: A five year, 4% , $80000 note payable is issued on January 1. Terms include fixed annual principal payments of $16000 plus interest on the

A five year, 4% , $80000 note payable is issued on January 1. Terms include fixed annual principal payments of \$16000 plus interest on the outstanding balance. The entry to record the first installment payment will include a:

A debit to notes payable of $16000

B credit to interest expense of $3200

C credit to notes payable of $12800

D debit to cash of $16000

Please advise which question is correct

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