Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January 1, 2019. The note was accepted as payment for merchandise with a fair value of $500,000. The effective interest rate is 10%. What is the correct entry to record the note? a. O b. c. d. Note receivable (dr.): $605,000 Accounts receivable (cr.): $605,000 Note receivable (dr.): $500,000 Accounts receivable (cr.): $500,000 Note receivable (dr.): $605,000 Discount on note receivable (cr.): $105,000 Sales revenue: $500,000 (cr.) Note receivable (dr.): $605,000 Interest revenue (cr.): $105,000 Cost of sales (cr.): $500,000