Young Company lends Dobson industries $30,000 on August 1, 2020, accepting a 9-month, 12% interest note. If Young prepares it financial statements as of December 31, 2020, what adjusting entry must it make?

Select one:

a. Notes Receivable 2,000 Interest Revenue 2,000

b. Accounts Receivable 2,000 Interest Receivable 2,000

c. Interest Receivable 1,500 Interest Revenue 1,500

d. Cash 1,500 Interest Revenue 1,500