A firm borrowed USD 30,000 on November 1 signing an interest-bearing note due in 90 days. The annual interest rate is 18%.   Prepare the adjusting entry required on December 31 for the interest that had been incurred. The firm adjusts its accounts at the end of the year only.     Group of answer choices Debit Interest payable 450, credit Interest expense 450 Debit Interest payable 900, credit Interest expense 900 Debit Interest expense 900, credit Interest payable 900 Debit Interest expense 450, credit Interest payable 450.

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A:

Q: adjusting entry should be made

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A:

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