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On May 1, 2021, NDFI, Inc., a calendar year reporter, borrowed $400,000 from BigBlue Bank by signing a three-year, 6% note payable. Interest is due
On May 1, 2021, NDFI, Inc., a calendar year reporter, borrowed $400,000 from BigBlue Bank by signing a three-year, 6% note payable. Interest is due each May 1. What adjusting entry, if any. should NDFI record on December 31, 2021 (assume that NDFI prepares adjusting entries on 12/31 only)? Select one: O a. No adjusting entry is necessary on December 31 O b. Debit Interest Expense and credit Interest Payable for $24,000 Oc. Debit Interest Expense and credit Interest Payable for $18,000 O d. Debit Interest Expense and Credit Interest Payable for $14,000 O e. Debit Interest Expense and credit Interest Payable for $16,000
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