On August 1, XYZ Corp. took out a three-year bank loan for $30,000. The loan has an annual interest rate of 10%. What is the adjusting entry to record the accrued interest expense on December 31 (year end)? Select one: a. Debit Interest Expense $1,250; credit Interest Payable $1,250 b. Debit Bank Loan $1,250; credit Interest Expense $1,250 c. Debit Bank Loan $3,000; credit Interest Expense $3,000 d. Debit Interest Expense $3,000; credit Interest Payable $3,000

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