Question "RED" On February 1, Chopper Motorcycles Ltd. signed a 5%, twelve-month bank loan payable for $168,000 to help finance increases in inventory for the spring and summer season. Assuming no entries have been made previously for the interest on this loan, what is the required adjusting entry for the interest accrued to December 31? (a) Interest Expense 7,000 Interest Payable 7,000 (b) Interest Expense 8,400 Interest Payable 8,700 (c) Interest Expense 700 Cash.... 700 (d) Interest Expense 7,700 Interest Payable 7,700