A company lends its supplier $165,000 for 3 years at a 9% annual interest rate. Interest payments are to be made twice a year. The entry to record the establishment of the loan includes a debit to: Multiple Choice
A)Interest Receivable and a credit to Interest Revenue for $7,425.
B)Notes Receivable and a credit to Cash for $165,000.
C)Cash and a credit to Notes Payable for $165,000.
D)Cash and a credit to Interest Revenue for $14,850.