A Company Lends Its Supplier $150,000 for 3 Years at a 6

Multiple Choice

A company lends its supplier $150,000 for 3 years at a 6% annual interest rate.Interest payments are to be made twice a year.The company initially records the transaction by:

A) debiting Notes Receivable for $150,000 and crediting Cash for $150,000.
B) debiting Cash for $150,000 and crediting Notes Payable for $150,000.
C) debiting Cash for $9,000 and crediting Interest Revenue for $9,000.
D) debiting Interest Receivable for $4,500 and crediting Interest Revenue for $4,500.