Ashland Community Bank lends $20,000 to a customer on October 1, 2019 for home remodeling. The following information applies:

• Ashland receives a note receivable from the customer.

• The note has a face value of $20,000 and an interest rate of 6%.

• All principal and accrued interest will be repaid on September 30, 2020.

• Ashlands fiscal year end on December 31.

What is the correct adjusting journal entry on December 31, 2019?

Question 8 options:

	Debit: Interest Expense $300 Credit: Interest Payable $300
	Debit: Interest Receivable $300 Credit: Cash $300
	Debit: Interest Receivable $300 Credit: Interest Revenue $300
	Debit: Cash $300 Credit: Interest Revenue $300