Uniform Supply Accepted a $4,800,90-Day,10% Note from Tracy Janitorial on October

Multiple Choice

Uniform Supply accepted a $4,800,90-day,10% note from Tracy Janitorial on October 17.What entry should Uniform Supply make on December 31,to record the accrued interest on the note?

A) Debit Cash $20;credit Notes Receivable $20.
B) Debit Cash $100;credit Notes Receivable $100.
C) Debit Interest Receivable $20;credit Interest Revenue $20.
D) Debit Interest Receivable $100;credit Interest Revenue $100.
E) Debit Cash $120;credit Interest Revenue $100;credit Interest Receivable $20.