Manhattan Company recorded an adjusting entry to accrue interest owed of $1,200 as of December 31, Year 1. When the related note was paid during Year 2, the company paid $2,250 in interest. Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry.)

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The Answer of Manhattan Company recorded an adjusting entry to accrue interest owed of $1,200 as of December 31, Year 1. When the related note was paid during Year 2, the company paid $2,250 in interest. Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry.)

Manhattan Company Recorded an Adjusting Entry to Accrue Interest Owed