Question

lo 3 the journal entry to record accrued interest on a short - term note payable includes a debit to:

Explanation:

When recording accrued interest on a short - term note payable, according to accounting principles, Interest Expense (an expense account which increases with a debit) is debited and Interest Payable (a liability account which increases with a credit) is credited.

Answer:

Interest Expense and a credit to Interest Payable.