On November 19, Nicholson Company Receives a $15,000, 60-Day, 8

Multiple Choice

On November 19, Nicholson Company receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)

A) Debit Interest Receivable $140; credit Interest Revenue $140.
B) Debit Notes Receivable $140; credit Interest Revenue $140.
C) Debit Interest Receivable $1,200; credit Interest Revenue $1,200.
D) Debit Notes Receivable $140; credit Interest Receivable $140.
E) Debit Interest Revenue $200; credit Interest Receivable $200.