Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to:

Interest Receivable for $37.50.

Interest Receivable for $37.50.

Interest Revenue for $37.50.

Interest Receivable for $75.