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On March 1, 20X1, your calendar year company borrows $ 10 ,000. T erms require repayment of principal and annual interest of 9 % after

On March 1, 20X1, your calendar year company borrows $10,000. Terms require repayment of principal andannual interest of 9% after 4 years. At year-end 20X1, an adjusting entry accrues $550 interest expense. If you discover the error before the books are closed, what is the correcting entry?

a.Interest Payable600

Interest Expense600

b.Interest Expense600

Interest Payable600

c.Interest Expense200

Interest Payable200

d.Interest Payable200

Interest Expense200

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