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Ryan's Gaming Supplies issued a $20,000, 6-month, 6% interest-bearing note as security for a cash loan from Park National Bank. The note was issued on November 1 to purchase inventory for the upcoming holiday season. On December 31, Ryan's fiscal year-end, an adjusting entry for the note includes a:
A. Debit to Interest Expense for $200.
B. Credit to Discount on Notes Payable for $200.
C. Credit to Discount on Notes Payable for $206.
D. Debit to Interest Expense for $206.