Globo company accepted a $8000. Interest-bearing note receivable from a client on July 1. The note requires payment of 12% annual interest, and both the principal amount of the note and the interest will be due six months later, on Dec.31. If financial statements are prepared at the end of July, which of the following entries will Globo have to make at the end of July?
1- Interest Revenue 80
Interest Receivable 80
2- Interest Receivable 160
Interest Revenue 160
3- Interest Receivable 80
Interest Revenue 80
4- Interest Revenue 160
Interest Receivable 160
Help would be appreciated
Dell