Jasper makes a $35,000, 90-day, 8.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)

		Debit Cash for $35,000; credit Notes Receivable $35,000.
		Debit Cash $35,743.75; credit Notes Receivable for $35,743.75.
		Debit Notes Payable $35,000; Debit Interest Expense $2975; credit Cash $37,975.
		Debit Cash $37,975; credit Interest Revenue $2975, credit Notes Receivable $35,000.
		Debit Cash $35,743.75; credit Interest Revenue $743.75; credit Notes Receivable $35,000.