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Crimson Tide borrows $18,500 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at

Crimson Tide borrows $18,500 on September 1, 2018. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.

I need to record the adjustment for interest in a journal entry. How do I do the math to find this?

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