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

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Q: im.3

A: Date | Account Titles | Debit | Credit Jan. 31 | Interest Expense | 988 | | Bonds Payable |…