Question: On March 1 , 2 0 X 1 , your calendar year company borrows $ 1 0 , 0 0 0 . Terms requirerepayment of

On March 1,20X1, your calendar year company borrows $10,000. Terms requirerepayment of principal and annual interest of 9% after 4 years. At year-end 20X1, anadjusting entry accrues $550 interest expense. If you discover the error before the books areclosed, what is the correcting entry?a. Interest Payable 600Interest Expense 600b. Interest Expense 600Interest Payable 600c. Interest Expense 200Interest Payable 200d. Interest Payable 550

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