Question: On August 15, an entity sold goods for which it received a note bearing the market rate of interest on that date. The four-month note

On August 15, an entity sold goods for which it received a note bearing the market rate of interest on that date. The four-month note was dated July 15. Note principal, together with all interest, is due November 15. When the note was recorded on August 15, which of the following accounts increased?

a. Interest revenue

b. Unearned discount

c. Interest receivable

d. Prepaid revenue

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