en 17 Hamada Company borrows $20,000 on October 1 from Arab bank by signing a $20,000, 10%, six month note payable. The journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year is: ed out of question O a Debit Interest expense 500 and credit Interest payable 500 O b. Debit Interest expense 1,000 and credit Interest payable 1,000 Oc Debit Interest payable 500 and credit Interest expense 500 O d. Debit Interest expense 2,000 and credit Interest payable 2,000