1. Sarah purchased merchandise from SAAD on October 17 of the current year. SAAD accepted ALIS $10,000, 90-day, 10% note as payment. What entry should SAAD make on January 15 of the next year when the note is paid? A.

Notes Receivable	10,000
Interest Receivable	250
Sales		10,250

B.

Cash	10,250
Notes Receivable		10,250

C.

Cash	10,250
Interest Revenue		208
Interest Receivable		42
Notes Receivable		10,000

D.

Cash	10,250
Interest Revenue		42
Interest Receivable		208
Notes Receivable		10,000