19.Adjusting entry for the interest on notes receivable (3-month note, $36,000, annual interest rate 10%) at the end of first month should be a. Debit: Interest Expense $300 Credit: Acc. Interest Payable $300 b. Debit: Acc. Interest Receivable $300 Credit: Interest Income $300 c. Debit: Interest Expense $1,200 Credit: Acc. Interest Payable $1,200 d. Debit: Acc. Interest Receivable $1,200 Credit: Interest Income $1,200