A company lends its supplier $159,000 for 3 years at a 9% annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to:

Multiple Choice

• Cash and a credit to Interest Revenue for $14,310.

• Cash and a credit to Notes Payable for $159,000.

• Interest Receivable and a credit to Interest Revenue for $7,155.

• Notes Receivable and a credit to Cash for $159,000.