On January 1, 20X1, Randolph Company issued bonds with a coupon rate of 8% (with interest paid once a year) and a face amount of $7,500. The bonds mature in 25 years. The market interest rate for bonds with the same degree of riskiness is 14% COMPOUNDED ANNUALLY. These bonds were issued on January 1, 20X1 for $4,407. Coupon payments are made annually on December 31, so the first coupon payment was made on December 31, 20X1. Randolph uses the effective-interest method on its books. Which one of the following is included in the journal entry on Randolph's books to record the FIRST coupon payment on December 31, 20X1? DEBIT to Cash of $600 DEBIT to Discount on Bonds of $617 DEBIT to Interest Expense of $617 DEBIT to Cash of $7,500