On October 1, 2021, Pennington Company issued a $90,000, 10%, 9-month interest-bearing note.If the Pennington Company is preparing financial statements at December 31, 2021, the adjusting entry for accrued interest will include a:
A) credit to Notes Payable of $2,250.
B) debit to Interest Expense of $2,250
C) credit to Interest Payable of $4,500.
D) debit to Interest Expense of $3,375.
Correct Answer:
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