HCF, a Finance Company, Lends Able Business $12,000 at 5

Multiple Choice

HCF, a finance company, lends Able Business $12,000 at 5% on December 1, 2015.HCF's adjusting entry on December 31, 2015, should include:

A) A credit to Interest Earned for $50.
B) A debit to Interest Expense for $600.
C) A debit to Cash for $600.
D) A debit to Interest Earned for $50.
E) A credit to Interest Receivable for $50.