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Herrindale Mart borrows $210,000 on July 1 with a short-term loan that has an annual...

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Accounting

Herrindale Mart borrows $210,000 on July 1 with a short-term loan that has an annual interest rate of 5% which is payable on the first day of each subsequent quarter. What will Herndale Mart need to accrue on August 31, assuming that no accrual has yet been made?

Select one:

A. $10,500; Decrease liabilities and decrease cash

B. $ 3,500; Increase liabilities, decrease retained earnings

C. $ 1,750; Increase liabilities, increase expenses

D. $ 3,500; Decrease liabilities, decrease cash

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