Arito, Inc. received an $16,000 30-day, 9% note dated December 21, 2016 from Rimawa Company. On December 31, 2016, Arito made the necessary adjusting entry to accrue interest income on the note. Aritos entry to record payment of the note on January 20, 2017 was:

Select one:

A.

Cash

16,120

	Interest income		120
	Notes receivable		16,000

B.

Cash

16,040

	Interest income		40
	Notes receivable		16,000

C.

Cash

16,120

	Interest receivable		40
	Interest income		80
	Notes receivable		16,000

D.

Cash

16,080

	Interest income		80
	Notes receivable		16,000