A Company Lends a Major Client $90,000 for One Year

Multiple Choice

A company lends a major client $90,000 for one year at a 7% annual interest rate.Interest payments are to be made twice a year.In July,the company receives an interest payment for January through June.The company would record receipt of the interest payment in which of the following ways?

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.