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  3. scarlet makes an $18,750, 120-day, 8% cash loan to

Scarlet makes an $18,750, 120-day, 8% cash loan to Greene Co. on November 1. Scarlet's...

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Question

Accounting

Scarlet makes an $18,750, 120-day, 8% cash loan to Greene Co. on November 1. Scarlet's end-of-period adjusting entry on December 31 should be:

Group of answer choices

A) Debit Cash for $250; credit Notes Receivable $250.

B) Debit Interest Revenue $500; credit Notes Receivable $500.

C) Debit Interest Receivable $250; credit Interest Revenue $250.

D) Debit Interest Receivable $500; credit Interest Revenue $500.

E) Debit Notes Receivable $500; credit Interest Revenue $500.

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