On October 1, Smith & Sons borrowed $60,000 from Bank of America on a 6

month, 7 percent note. If the company's fiscal year ends on December 31 and

no adjusting entries have been made since the initial journal entry on October 1,

Smith & Sons should make a year-end adjusting entry involving a debit to:

Select one:

Interest expense for $2,100

Interest payable for $2,100

Interest expense for $1,050

Interest payable for $1,050

Interest expense for $700

Interest payable for $700