Q) Natural Designs sells furniture on 12 months interest free terms to qualifying customers. On 30 June 2019, Natural Designs sells $20 000 of furniture to T. Bailey, payable by 30 June 2020. The appropriate interest rate for this transaction is determined to be 6% per annum. The present value of the $20 000 to be received in one years time is $18 868. The journal entry to be recorded by Natural Designs at 30 June 2019 is:

A) DR Bank $20 000; CR Receivable $20 000

B) DR Receivable $20 000; CR Sales revenue $20 000

C) DR Receivable $20 000; CR Sales revenue $18 868; CR Interest revenue $1 132

D) DR Receivable $20 000; CR Sales revenue $18 868; CR Deferred interest $1 132