Purchase a 20xw Ford truck for $26,750. The terms include a $4,750 down payment an a 3-year, 6% promissory note to Ford Credit for the remaining $22,000, principal and interest on the note are due monthly beginning January 4, 20xy. The company expects the truck to have a useful life of 5 years and no salvage value.

Calculte monthly accrued interest expense for the installment note to Ford Credit (based on 365 days per year and interest starting to accrue on December 17.20XX). Make the appropriate adjusting entry. The payable is posted to Other Accrued Expenses Payable.