Crane Limited borrowed $$88,800$ from National Limited on July $1$ and issued a three$-$month note payable at $6\%$ due at maturity on October $1.$ Crane's year end is August $31$ and the company records adjusting entries only at that time.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the Accrual of interest expense on august $31$