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: a. Debit Interest expense 1,000 and credit Interest payable 1,000 b. Debit Interest payable 500 and credit Interest expense 500 C Debit Interest expense 500 and credit Interest payable 500 d Debit Interest expense 2,000 and credit interest payable 2,000