On November 6,an 10%,90-Day,$4,000 Note Was Accepted by Carmen in Exchange

Multiple Choice

On November 6,an 10%,90-day,$4,000 note was accepted by Carmen in exchange for merchandise.What entry does Carmen make on December 31 to recognize the interest?

A) Credit Interest Receivable;debit Interest Income $61.11
B) Debit Interest Receivable;credit Interest Income for $61.11
C) Debit Interest Receivable;credit Interest Income for $100.00
D) None of these answers is correct.