On, November 1, 2025, Ashton, Inc. purchased merchandise inventory for $38,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 9%. The journal entry to record the accrued interest expense on December, 31, 2025 would be:

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 14MCQ
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On, November 1, 2025, Ashton, Inc. purchased merchandise inventory for $38,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 9%. The journal entry to record the accrued interest expense on December, 31, 2025 would be:

OA. Interest Expense
Interest Payable
OB. Interest Expense
Interest Payable
OC. Interest Payable
Interest Expense
OD. Interest Payable
Interest Expense
570
1,710
1,710
570
570
1,710
1,710
570
Transcribed Image Text:OA. Interest Expense Interest Payable OB. Interest Expense Interest Payable OC. Interest Payable Interest Expense OD. Interest Payable Interest Expense 570 1,710 1,710 570 570 1,710 1,710 570
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