On November 16, Gerlach borrowed $25,000 form First Bank. The terms of the note were 90 days at 12% interest. Gerlach's accounting period follows the calendar year. The journal entry to record the event on December 31 includes: a credit to Cash for $375. No journal entry is made. Two of the answers are correct. a debit to Note Payable for $375. a debit to Interest Expense for $375