Lenore, Inc. gathered the following information from its accounting records and the October bank statement to prepare the October bank reconciliation:

Ending cash balance per books, 10/31	$	7,000
Deposits in transit		300
Interest received from bank		1,700
Bank service charge for check printing		60
Outstanding checks		4,000
NSF check of T. Owens		350

What journal entry would Lenore, Inc. be required to record for the interest received from the bank?

Multiple Choice

• Debit Interest Revenue and credit Cash for $1,700.

• No journal entry is required because the bank is aware of the interest payment.

• Debit Interest Receivable and credit Interest Revenue for $1,700.

• Debit Cash and credit Interest Revenue for $1,700.