Vendor X sells a high-end furniture set to Customer Y in exchange for a three-year note receivable bearing no interest rate. Although prevailing market rates show that an appropriate interest rate for the transaction is 5 percent, the parties agree that a more reasonable rate for this specific transaction is 6 percent. Relative to a 5 percent interest rate, the 6 percent implied rate will result in: 

a. A decrease in annual interest income. 

b. A decrease in the initial notes receivable asset. 

c. An increase in the annual amortization of the discount on notes receivable. 

d. An increase in sales booked

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