Bill's Bikes Discounts a Customer's 90-Day, 8%, $3,000 Note at a Bank

Multiple Choice

Bill's Bikes discounts a customer's 90-day, 8%, $3,000 note at a bank at 12%. The discount period is 45 days. It records the proceeds as: (Use a 360-day year. Do not round any intermediate calculations. Round your final answers to the nearest dollar.)

A) debit Cash $3,014; credit Notes Receivable $3,000; credit Interest Income $14.
B) debit Cash $3,150; credit Notes Receivable $3,060; credit Interest Income $90.
C) debit Cash $3,046; credit Notes Receivable $3,000; credit Interest Income $46.
D) debit Cash $3,014; credit Notes Receivable $3,000; credit Interest Expense $14.