On October 1, 2015, Attra Inc. borrows $219,000 on a three-year note that requires the company to pay 12% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit:

Interest Expense and credit Cash for $13,140.

Interest Expense and credit Interest Payable for $13,140.

Interest Expense and credit Interest Payable for $6,570.

Interest Payable and credit Interest Expense for $6,570.

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