On January 1, a customer asked your company to convert the $200,000 they owe you into a promissory note. The amount will be due 6 months from now and you will charge them 8% interest to be paid when the principal is due. What entry will be made when the note is paid back? Note that your company has a year-end of December 31.

Select one:

a. Debit Cash $208,000, Credit Note Receivable $200,000, Credit Interest Revenue $8,000

b. Debit Cash $200,000, Debit Interest Revenue $8,000, Credit Note Receivable $200,000, Credit Interest Receivable $8,000

c. Debit Cash $208,000, Credit Note Receivable $200,000, Credit. Interest Receivable $200,000

d. Debit Note Receivable $200,000, Credit Interest Receivable $8,000, Credit Cash $200,000, Credit Interest Revenue $8,000