The following information applies to the questions displayed below.] On November 1, Year 1, Noble Co. borrowed $80,000 from South Bank and signed a 12%, six-month note payable, all due at maturity. The interest on this loan is stated separately. At December 31, Year 1, the adjusting entry with respect to this note includes a:

Multiple Choice

Credit to Interest Payable for $1,600.

Credit to Notes Payable for $1,600.

Debit to Interest Expense for $3,200.

Credit to Cash for $3,200.