LO4. A gift shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $20,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? A) Interest Expense Debit Credit Interest Payable 200 B) Interest Expense 300 Interest Payable 300 C) Interest Expense Cash D) 200 200 \begin{tabular}{lll} Interest Expense & 300 & \\ Notes Payable & & 300 \end{tabular}