Measurement (end of the year): At the end of the year, an adjusting entry is used to record:

Multiple Choice

A. interest payable for the amount of interest incurred during the current year.

B. interest expense for the amount of interest incurred during the current year.

C. both interest expense for the amount of interest incurred during the current year and interest payable for the amount of interest incurred during the current year.

D. interest payable for the total amount of interest to be paid next year.