On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $27,000. What is the adjusting entr

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On November 1, Alan Company signed a 120-day, 10% note payable,
with a face value of $27,000. What is the adjusting entry for the
accrued interest at December 31 on the note? (Use 360
days a year.)
Multiple Choice
Debit Interest Expense, $450; credit Interest Payable, $450.
Debit Interest Expense, $600; credit Interest Payable, $600.
Debit Interest Payable, $300; credit Interest Expense, $300.
Debit Interest Payable, $900; credit Interest Expense, $900.
No adjusting entry is required.