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On Oct. 1, $50,000 is borrowed from the Ace Bank. The promissory note has a 9 month term, with an interest rate of 10%. With
On Oct. 1, $50,000 is borrowed from the Ace Bank. The promissory note has a 9 month term, with an interest rate of 10%. With a year-end of Dec. 31, the adjusting entry to accrue interest expense would be
| $5,000 |
| $1,250 |
| $3,750 |
| $416 |
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