2. ABC Company paid $2,400 for a two-year insurance policy on January 1 of the current year. Prepare the required adjustment for the expired insurance at the end of the current year. Credit 3. ABC Company has a $10,000 note payable due March 15 of next year. The note originated on July 1 of the current year and bears interest at the rate of 5%. Prepare the required journal entry to recognize interest expense.