Robbie Company Paid Hoover Company for Merchandise with an $8,000 $\quad$

Robbie Company paid Hoover Company for merchandise with an $8,000, 60-day, 9% note dated April 1. If Robbie Company pays the note at maturity, what entry should Hoover make at that time?

A) Cash 8,720
$\quad$ $\quad$ Interest income 720
$\quad$ $\quad$ Notes receivable 8,000
B) Notes payable 8,000
$\quad$ $\quad$ $\quad$ Interest expense 720
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Cash 8,720
C) Cash 8,120
$\quad$ $\quad$ $\quad$ Interest income 120
$\quad$ $\quad$ $\quad$ Notes receivable 8,000
D) Notes payable 7,880
$\quad$ $\quad$ $\quad$ Interest expense 120
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Cash 8,000