On February 1, 2021, Sanger Corp. lends cash and accepts a $2,000 note receivable that offers 10% interest and is due in six months. What would Sanger record on August 1, 2021, when the borrower pays Sanger the correct amount owed?
A. Debit - Cash 2,000
Debit - Interest Revenue 100
Credit - Notes Receivable 2,100
B. Debit - Cash 2,100
Credit - Notes Receivable 2,100
C. Debit - Cash 2,100
Credit - Interest Revenue 100
Credit - Notes Receivable 2,000
D. Debit - Cash 2,200
Credit - Notes Receivable 2,200
Answer: Debit - Cash 2,100
Credit - Interest Revenue 100
Credit - Notes Receivable 2,000
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Accounting
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