On December $31,2022,$ interest of $$700$ is owed on a bank loan that will not be paid until June $30,2023.$ If no adjustments have been recorded yet for interest, what is the necessary adjusting journal entry on December $31,2022?$

Multiple Choice

Debit Interest Receivable and credit Interest Revenue for $$700.$

Debit Interest Expense and credit Cash for $$700.$

Debit Interest Payable and credit Interest Expense for $$700.$

Debit Interest Expense and credit Interest Payable for $$700.$