1. On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services rendered. The note receivable will be due on February 1, 20X2 with interest at 4% per year. ABC Co. adjusts its books monthly. What adjusting entry is needed on ABC Co.s books on December 31, 20X1?

   	a.	Debit: Interest receivable..100 Credit: Interest income........100
   	b.	Debit: Interest expense..100 Credit: Interest payable.100
   	c.	Debit: Interest receivable..200 Credit: Interest income........200
   	d.	Debit: Cash.. .100 Credit: Interest income..100