Chopper Company Paid Keith Company for Merchandise with a $24,000 $\quad$

Chopper Company paid Keith Company for merchandise with a $24,000, 60-day, 9% note dated April 1. If Chopper Company pays the note at maturity, what entry should Keith make at that time?

A) Cash 26,160
$\quad$ $\quad$ $\quad$ Interest income 2,160
$\quad$ $\quad$ $\quad$ Notes receivable 24,000
B) Notes payable 24,000
Interest expense 2,160
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Cash 26,160
C) Cash 24,360
$\quad$ $\quad$ $\quad$ Interest income 360
$\quad$ $\quad$ $\quad$ Notes receivable 24,000
D) Notes payable 23,640
$\quad$ $\quad$ $\quad$ Interest expense 360
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Cash 24,000