The journal entry to issue a promissory note for a company lending

$2,000

for one year at an annual interest rate of

3%

would be:

A.Debit Cash for

$2,000,

credit Notes Receivable for

$2,000.

B.Debit Cash for

$2,060,

credit Notes Receivable for

$2,000

and Interest Revenue for

$60.

C.Debit Notes Receivable for

$2,000,

credit Cash for

$2,000.

D.

no entry is needed.