At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation at December 31?

a. The balance sheet will report the note receivable of $8,400.

b. The balance sheet will report the note receivable of $8,400 and interest receivable of $700.

c. Nothing because the business has not received the cash yet.

d. The income statement will report a note receivable of $8,400.