On January 1,Jewel Company buys $200,000 of Marcelo Corp.12%,36-month notes.Interest is paid on the last day of each month.The notes are classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities.On December 31,the notes have a fair value of $204,000.The journal entry to record the receipt of the monthly interest on January 31 is:
A) Debit Cash $24,000; credit Debt Investments-AFS $24,000.
B) Debit Cash $2,000; credit Debt Investments-AFS $2,000.
C) Debit Cash $2,000; credit Fair Value Adjustment-AFS (LT) $2,000.
D) Debit Cash $2,000; credit Interest Revenue $2,000.
E) Debit Cash $2,000; credit Fair Value Adjustment-AFS (ST) $2,000.
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