Oliver Industries borrowed $100,000 from the bank signing a 7%, one year note on January 1, 2022. Principal and interest are payable to the bank on January 1, 2023. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on January 31, 2022 would be: debit Interest Expense, $1,750; credit Interest Payable, $1,750. debit Interest Expense, $583; credit Interest Payable, $583. debit Interest Payable, $7,000; credit Cash, $7,000. No adjusting entry is needed until the load is paid off