The entry to record this lending transaction includes debit

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Reference no: EM131292228

A company lends its supplier $160,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to:

a. Interest Receivable and a credit to Interest Revenue for $8,000.

b. Notes Receivable and a credit to Cash for $160,000.

c. Cash and a credit to Interest Revenue for $16,000.

d. Cash and a credit to Notes Payable for $160,000.

Reference no: EM131292228

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