On November 1, Year 1, Needham, Inc., issued a 5-month, 6%, $10,000 note. Record the adjusting journal entry for the interest incurred for the year ended December 31, Year 1.

_Debit

_Credit

A. Interest Expense $240 B. Interest Payable $240 C. Interest Expense $100 D. Interest Payable $120 E. Interest Payable $100 F. Interest Expense $120 G. Cash $240 H. Cash $120