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Problem 1: On December 1, 2020, Shaw Company accepted from Bogner a $10,000, 3-month, 8% note in lieu of an existing $10,000 account receivable. Shaw Company's fiscal year-end is December 31. What journal entry, if any, should Bonger Company record on December 31, 2020? Option 1: Debit Interest Expense, $800; and Credit Interest Payable, $800 Option 2: Debit Interest Payable, $800; and Interest Expense, $800 Option 3: Debit Interest Payable, $67; and Interest Expense, $67 Option 4: Debit Interest Expense, $67; and Credit Interest Payable, $67 Option 5: No journal entry needed
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