On June 1, 2009, Jensen Company acquired an 8%, ten-month note receivable from a customer in settlement of an existing account receivable of $130,000. Interest and principal are due at maturity.

The proper adjusting entry at December 31, 2009, with regard to this note receivable includes a:

Select one:

a. Debit to Cash of $6,067

b. Debit to Notes Receivable of $10,400.

c. Credit to Interest Revenue of $10,400.

d. Debit to Interest Receivable of $6,067.