On August 1,2010,Ace Corporation Accepted a Note Receivable in Place $$\begin{array} { |l | r | r | } \hline \text { Cash } & 123,965.00 & \\\hline \text { Notes Receivable } & & 123,965.00 \\\hline\end{array}$$

Multiple Choice

On August 1,2010,Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965.The note is due in 90 days and has an interest rate of 8%.What would be the appropriate journal entry to record the receipt of cash at the maturity date?

A)
$$\begin{array} { |l | r | r | } \hline \text { Cash } & 123,965.00 & \\\hline \text { Notes Receivable } & & 123,965.00 \\\hline\end{array}$$
B)
$$\begin{array} { | c | r | r | } \hline \text { Notes Receivable } & 123,965.00 & \\\hline \text { Accounts Receivable } & & 123,965.00 \\\hline\end{array}$$
C)
$$\begin{array} { | l | r | r | } \hline \text { Notes Receivable } & 123,965.00 & \\\hline \text { Interest Revenue } & 2,479.30 & \\\hline \text { Cash } & & 126,444.30 \\\hline\end{array}$$
D)
$$\begin{array} { | l | r | r | } \hline \text { Cash } & 123,965.00 & \\\hline \text { Interest Receivable } & 2,479.30 & \\\hline \text { Notes Receivable } & & 126,444.30 \\\hline\end{array}$$
E)
$$\begin{array} { | l | r | r | } \hline \text { Cash } & 126,444.30 & \\\hline \text { Interest Receivable } & & 2,479.30 \\\hline \text { Notes Receivable } & & 123,965.00 \\\hline\end{array}$$