Question 3 2 pts On October 1, 2012, Pete's Playhouse borrowed $4,000 on a 12%, one-year note payable. A correct adjusting entry was made on December 31, 2012, and a correct reversing entry was made on January 1, 2013. No other AJE's have been made. The entry that should be made when the note is paid off, is O Dr. Interest Expense 240; Cr. Cash 240 Dr. Interest Payable 480; Dr. Note Payable 4,000; Cr. Cash 4,480 O Dr. Interest Expense 360; Dr. Interest Payable 120; Dr. Note Payable 4,000; Cr. Cash 4,480 Dr. Interest Expense 480; Dr. Note Payable 4,000; Cr. Cash 4,480