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On February 1, 2021, Sanger Corp. lends cash and accepts a $10,000 note receivable that offers 12% interest and is due in six months.

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On February 1, 2021, Sanger Corp. lends cash and accepts a $10,000 note receivable that offers 12% interest and is due in six months. What would Sanger record on August 1, 2021, when the borrower pays Sanger the correct amount owed? (Do not round intermediate calculations.) A. Cash 10,600 Interest Revenue Notes Receivable 400 10,200 B. Cash 10,000 Accounts Receivable 10,000 c. Cash 10,600 Interest Revenue Notes Receivable 600 10,000 D. Cash 10,600 Notes Receivable 10,600

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