When the Holder of an Interest-Bearing Note Is Unable to Collect

When the holder of an interest-bearing note is unable to collect the note when due, the journal entry includes

A) debiting Notes Receivable and crediting Accounts Receivable.
B) debiting Notes Receivable and crediting Accounts Receivable and Interest Revenue.
C) debiting Accounts Receivable and crediting Interest Revenue.
D) debiting Accounts Receivable and crediting Notes Receivable and Interest Revenue.

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