Art Company calculates that interest of $1,800 has accrued at December 31 on outstanding notes payable. How should Art record this on December 31?

Name: Art Company calculates that interest of $1,800 has accrued at December 31 on outstanding notes payable. How should Art record this on December 31?
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Question

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Interest expense for the month of December must be recognized as expense. A liability (payable) must be recorded since the amount has not yet been paid.

Art Company Calculates That Interest of $1,800 Has Accrued at December