On November $1,$ Alan Company signed a $120-$day, $10\%$ note payable, with a face value of $$13,500.$ What is the adjusting entry for the accrued Interest at December $31$ on the note? $($Use $360$ days a year$)$

Multiple Choice

Deblt interest Expense, $$150$; credit Interest Payable, $$150.$

No acjusting entry is required.

Deblt interest Payable, $$450$; crecit interest Expense, $$450$

Debit interest Expense, $5225$ ; credit interest Payable, $$225$

Debit interest Payable, $$300$; credit interest Expense, $$300$