On November 1,Alan Company Signed a 120-Day,8% Note Payable,with a Face

Multiple Choice

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the adjusting entry for the accrued interest at December 31 on the note?

A) Debit interest expense,$0;credit interest payable,$0.
B) Debit interest payable,$120;credit interest expense,$120.
C) Debit interest expense,$120;credit interest payable,$120.
D) Debit interest expense,$720;credit interest payable,$720.
E) Debit interest payable,$240;credit interest expense,$240.