Balen, Inc $\quad$ $\quad$ $\quad$ Interest Income 360 $\quad$

Balen, Inc. received a $48,000 30-day, 9% note dated December 21, 2019 from Vargas Company. On December 31, 2019, Balen made the necessary adjusting entry to accrue interest income on the note.
Balen's entry to record payment of the note on January 20, 2020 was:

A) Cash 48,360
$\quad$ $\quad$ $\quad$ Interest income 360
$\quad$ $\quad$ $\quad$ Notes receivable 48,000
B) Cash 48,120
$\quad$ $\quad$ $\quad$ $\quad$ Interest income 120
$\quad$ $\quad$ $\quad$ $\quad$ Notes receivable 48,000
C) Cash 48,360
$\quad$ $\quad$ $\quad$ Interest receivable 120
$\quad$ $\quad$ $\quad$ Interest income 240
$\quad$ $\quad$ $\quad$ Notes receivable 48,000
D) Cash 48,240
$\quad$ $\quad$ $\quad$ Interest income 240
$\quad$ $\quad$ $\quad$ Notes receivable 48,000