On January 1, a customer asked your company to convert the $200,000 they owe to a promissory note. The $200,000 principal, plus 8% interest will be due in six months. What is the entry when the note is paid if 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 $208,000, Credit Note Receivable $200,000, Credit. Interest Receivable $200,000

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

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