Absolute Appliances The Company Sold Merchandise to a Customer on December 1

Absolute Appliances
The company sold merchandise to a customer on December 1, Year 1, for $120,000. The company accepted a promissory note as payment. The note has a term of three months and an annual interest rate of 10%. The company's accounting period ends on December 31.
-Refer to the figure Absolute Appliances.What amount should the company recognize as interest revenue on the maturity date of the note?

A) $0
B) $1,000
C) $2,000
D) $3,000