Question 27 On October 1, Waterway's Carpet Service borrows $365000 from First National Bank on a 3-month, $365000, 8% note. The entry by Waterway's Carpet Service to record payment of the note and accrued interest on January 1 is 394200 Notes Payable Cash 394200 Notes Payable Interest Payable Cash 372300 29200 365000 Notes Payable Interest Expense Cash 394200 Notes Payable Interest Payable Cash 365000 7300 372300