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  3. a company lends its supplier $160,000 for 3 years

A company lends its supplier $160,000 for 3 years at a 10% annual interest rate....

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Accounting

A company lends its supplier $160,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to:

a.Interest Receivable and a credit to Interest Revenue for $8,000.

b.Notes Receivable and a credit to Cash for $160,000.

c.Cash and a credit to Interest Revenue for $16,000.

d.Cash and a credit to Notes Payable for $160,000.

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