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

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 January 15 of the next year when the note is paid? (Assume reversing entries are not made.) (Use 360 days a year.)

A) Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.
B) Debit Notes Receivable $4,800; debit Interest Receivable $120; credit Sales $4,920.
C) Debit Cash $4,920; credit Notes Receivable $4,920.
D) Debit Cash $4,920; credit Interest Revenue $20; credit Interest Receivable $100; credit Notes Receivable $4,800.
E) Debit Cash $4,920; credit Interest Revenue $120; credit Notes Receivable $4,800.