Swifty High School borrowed $21600 from the bank, signing a 7%, three-month note on September 1. Principal and interest are payable to the bank on December 1. If the school prepares monthly financial statements and uses months to calculate interest, the adjusting entry that the school should make for interest on September 30 would be debit Interest Expense, $504; credit Interest Payable, $504. debit Cash, $126; credit Interest Payable, $126. debit Note Payable, $1512; credit Cash, $1512. O debit Interest Expense, $126; credit Interest Payable, $126.

Swifty High School borrowed $21600 from the bank, signing a 7\%, three-month note on September 1. Principal and interest are payable to the bank on December 1. If the school prepares monthly financial statements and uses months to calculate interest, the adjusting entry that the school should make for interest on September 30 would be debit Interest Expense, $504; credit Interest Payable, $504. debit Cash, \$126; credit interest Payable, \$126. debit Note Payable, \$1512; credit Cash, \$1512. debit Interest Expense, \$126; credit Interest Payable, \$126