On January 1,a Company Lends a Customer $90,000 for One

Multiple Choice

On January 1,a company lends a customer $90,000 for one year at a 7% annual interest rate.The note requires the payment of interest twice each year on June 30 and December 31.An adjusting entry to accrue interest is recorded at the end of every month.On July 2,a check for the interest payment for January through June comes in the mail.What journal entry will the company record on July 2?

A) Debit Interest Receivable for $3,150 and credit Interest Revenue for $3,150.
B) Debit Cash for $3,150 and credit Notes Receivable for $3,150.
C) Debit Interest Revenue for $3,150 and credit Cash for $3,150.
D) Debit Cash for $3,150 and credit Interest Receivable for $3,150.