An adjustment that must be made for the accrued interest on a note payable would include a:
A) credit to Interest Expense.
B) debit to Interest Expense.
C) debit to Interest Payable.
D) credit to Notes Payable.

Question

Quizplus · Accepted Answer

Accrued interest on a note payable is an expense that has been incurred but not yet paid, so it requires a debit to Interest Expense to recognize the cost.

An Adjustment That Must Be Made for the Accrued Interest