The adjusting entry to accrue interest on a note payable requires a credit to Interest Payable.

Name: The adjusting entry to accrue interest on a note payable requires a credit to Interest Payable.
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Accrued interest on a note payable represents an expense that has been incurred but not yet paid. As such, it is recorded with a credit to Interest Payable and a debit to Interest Expense in the adjusting entry.

The Adjusting Entry to Accrue Interest on a Note Payable