Milton Company,a Valued Customer,placed an Order for $1,500 on January $\begin{array}{ll}\text { Notes recelvable } & 10 \\\quad \text { Interest revenue } & & 10\\\end{array}$

Milton Company,a valued customer,placed an order for $1,500 on January 1.Because Milton is experiencing financial difficulties,it has been allowed to pay with a 3-month note receivable.The interest rate on the note is 8%.What adjusting entry is necessary for Oleke Manufacturing on January 31?

A) $\begin{array}{ll}\text { Notes recelvable } & 10 \\\quad \text { Interest revenue } & & 10\\\end{array}$

B) $\begin{array}{lccc}\text { Accrued interest receivable } & 120 \\\quad \text { Interest revenue } && 120 \\\end{array}$

C) $\begin{array}{lccc}\text { Accrued interest receivable } & 10 \\\quad \text { Interest revenue } & & 10\\\end{array}$

D) $\begin{array}{lccc}\text { Notes receivable }&120 \\\quad\text { Interest revenue }&&120 \\\end{array}$

E) $\begin{array}{lccc}\text { Notes receivable } &60\\\quad\text { Interest revenue }&&60\end{array}$