Lemming makes an $18,750, 120-day, 8% cash loan to Notions Co. on November 2. Lemming's end-of-period adjusting entry on December 31 should be:
Debit Cash for $250; credit Notes Receivable $250.
Debit Interest Revenue $500; credit Notes Receivable $500.
Debit Interest Receivable $250; credit Interest Revenue $250.
Debit Interest Receivable $500; credit Interest Revenue $500.
Debit Notes Receivable $500; credit Interest Revenue $500.