On November 19, Nicholson Company receives a $20,400, 60-day, 5% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)
A) Debit Interest Revenue $170; credit Interest Receivable $170.
B) Debit Interest Receivable $119; credit Interest Revenue $119.
C) Debit Interest Receivable $170; credit Interest Revenue $170.
D) Debit Interest Revenue $119; credit Interest Receivable $119.
E) Debit Interest Receivable $51; credit Interest Revenue $51.