A review of the ledger of Blue Corporation on December 31, 2022 reveals a balance before adjustment in notes payable account of $600,000. This balance consists of a 3-month, 8% interest-bearing note payable dated December 1, 2022 .

What adjusting entry should Blue make on December 31, 2022?

Group of answer choices

Debit Interest Expense and credit Interest Payable, $12,000

Debit Interest Expense and credit Cash, $12,000

Debit Interest Expense and credit Interest Payable, $4,000

Debit Interest Expense and credit Cash, $4,000