On September 1, 2020,Balboa Company invests $40,000 in a 2-month CD that paysan annual interest rate of 1.5 percent.Assume that the CD matures on October 31 and thatBalboa prepares financial statements at the end of each calendar month.Which of the following statements is true?

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

b. Balboa will debit interest receivable by $100 on October 31

c. Balboa will debit cash by $40,000 on September 30

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