On October 1,2018,Highview Company Borrows $360,000 on a Three-Year Note

Multiple Choice

On October 1,2018,Highview Company borrows $360,000 on a three-year note that requires the company to pay 6% interest on March 31 and September 30.On December 31,2018,the adjusting entry to accrue interest on the note should debit:

A) Interest Expense and credit Interest Payable for $5,400.
B) Interest Payable and credit Interest Expense for $5,400.
C) Interest Expense and credit Cash for $10,800.
D) Interest Expense and credit Interest Payable for $10,800.