Timmy Ltd has an account receivable for $13,000 from Lena that is overdue. David requests a 73-day extension of the payment date and Timmy Ltd agrees by accepting a fixed 73-day, 15% promissory note in exchange for the accounts receivable. The entry Timmy Ltd makes on receipt of the note is:

Select one:

a. Debit Accounts Receivable $13,000, debit Unearned Interest $390; credit Bills Receivable $13,390

b. Debit Bills Receivable $13,000; credit Accounts Receivable $13,000

c. Debit Bills Receivable $13,390; credit Accounts Receivable $13,000, credit Interest Revenue $390

d. Debit Bills Receivable $13,390; credit Accounts Receivable $13,000, credit Unearned Interest $390