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