The United Shipping Co. made an adjusting entry accruing interest on a note payable for the month of January for $800. The note required 12% per annum on the principal. The principal amount of the note payable must have been

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The interest for one month is $800. Since the annual interest rate is 12%, the monthly interest rate is 1% (12% / 12 months). Therefore, the principal amount is $800 / 0.01 = $80,000.