On October $1,2021,$ Highview Company borrows $$201,000$ on a three$-$year note that requires

the company to pay $8\%$ interest on March $31$ and September $30.$ On December $31,2021,$ the

adjusting entry to accrue interest on the note should debit:

Multiple Choice

Interest Expense and credit Cash for $$8,040.$

Interest Expense and credit Interest Payable for $$4,020.$

Interest Payable and credit Interest Expense for $$4,020.$

Interest Expense and credit Interest Payable for $$8,040.$