On October 1, 2020, Pennington Company issued a $90,000, 10%, 9-month interest-bearing note.Assuming interest was accrued on June 30, 2021, the entry to record the payment of the note on July 1, 2021, will include a:

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The interest for 9 months is $6,750 ($90,000 * 10% * 9/12). On June 30, 2021, interest payable of $6,750 would have been recorded, and on July 1, 2021, this amount is debited to clear the liability.

On October 1, 2020, Pennington Company Issued a $90,000, 10