Lifetime, Inc. has one long$-$term note payable outstanding on December $31,2020$ for

$100,000.$ Monthly interest $($no principal$)$ payments are due on the $1^{st}$ of each

month. The payment was last made on December $1,2020$ and the next payment will

be made on January $1,2021.$ If the interest rate on the loan is $12\%$ per year and

Lifetime fails to make the appropriate adjusting entry, what will be incorrect on the

financial statements at the end of $2020?$

Interest expense will be too low by $$12,000$

Notes payable will be too high by $$1,000$

Interest payable will be too high by $$12,000$

Interest payable will be too low by $$1,000$