Howard Raj started Raj Company on January 1, Year 1. The company experienced the following events during its first year of operation: 1. Borrowed $3,700 cash from the bank.. 2. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on August 1, Year 1, had a one-year term and a 12 percent annual interest rate. Required a. What is the amount of interest expense in Year 1? b. What amount of cash was paid for interest in Year 1? Complete this question by entering your answers in the tabs below. Req A and B What is the amount of interest expense in Year 1? (Do not round intermediate calculations.) What amount of cash was paid for interest in Year 1? a. Interest expense b. Interest payment A and B