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 December 31, to record the accrued interest on the note?

A) Debit Interest Receivable $20; credit Interest Revenue $20.
B) Debit Cash $100; credit Notes Receivable $100.
C) Debit Interest Receivable $100; credit Interest Revenue $100.
D) Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.
E) Debit Cash $20; credit Notes Receivable $20.