On October 1st 2022, ABC Co. signed a 5-month note payable with principal of $1,000 and an annual interest rate of 12%. In the adjusting journal entry to record interest expense on 12/31/2022 (first year), which account will be credited related to this transaction? Interest expense Interest payable Note receivable Cash Solve all questions

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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On October 1st 2022, ABC Co. signed a 5-month note payable with principal of $1,000 and an annual interest rate of 12%. In the adjusting journal entry to record interest expense on 12/31/2022 (first year), which account will be credited related to this transaction?

Interest expense

Interest payable

Note receivable

Cash

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