On january 1, a company issued and sold a $394,000, 9%, a 10-year bond payable, and received proceeds of $389,000. interest is payable each june 30 and december 31. the company uses the straight-line method to amortize the discount. the journal entry to record the first interest payment is: a. debit bond interest expense $17,730; debit discount on bonds payable $250; credit cash $17,980.b. debit bond interest expense $17,980; credit cash $17,730; credit discount on bonds payable $250.c. debit bond interest expense $35,460; credit cash $35,460.d. debit bond interest expense $17,730; credit cash $17,730.