On September 1, 2020, Balboa Company invests $40,000 in a 2-month CD that pays an annual interest rate of 1.5 percent. Assume that the CD matures on November 1 and that Balboa prepares financial statements at the end of each calendar month. Which of the following statements is true?

Balboa will credit interest income by $100 on October 31.

Balboa will debit interest income by $50 on September 30.

Balboa's balance sheet will show an inerest receivable asset of $100 on October 31.

Balboa will credit interest receivable by $50 on October 31.