On March 1, 2018, Everson Services issued a

10%

longterm

notes payable for

$18,000.

It is payable over a

3year

term in

$6,000

annual principal payments on March 1 of each year plus interest, beginning March 1, 2019. Each yearly installment will include both principal repayment of

$6,000

and interest payment for the preceding

oneyear

period. On March 1, 2019, ________. The accounting period ends on December 31.

A.Everson must pay

$1,800

of interest to the note holder

B.Everson must accrue

$6,000

of Interest Expense

C.Everson will receive

$6,000

as an installment payment

D.Everson must accrue the next note payment of

$6,000

as the current portion of principal payment