A company lends its supplier $154,000 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:

Notes Receivable and a credit to Cash for $154,000.

Cash and a credit to Interest Revenue for $15,400.

Cash and a credit to Notes Payable for $154,000.

Interest Receivable and a credit to Interest Revenue for $7,700.