Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January 1, 2021. The note was accepted as payment for merchandise with a fair value of $500,000. The effective interest rate is 10%. The cash collection on December 31, 2022, would be recorded as:

Multiple Choice

• Cash	605,000
  Notes receivable		605,000

• Cash	605,000
  Discount on notes receivable	105,000
  Notes receivable		605,000
  Interest revenue		105,000

• Cash	605,000
  Notes receivable		500,000
  Discount on notes receivable		105,000

• Discount on notes receivable	55,000
  Cash	605,000
  Notes receivable		605,000
  Interest revenue		55,000