Good Food Company lent $300,000 cash on September 30 and received a one-year 5%, interest-bearing note receivable. The required adjusting entry on December 31 would be

a. Interest Receivable +$2,000
Interest Revenue +$2,000

b. Interest Receivable +$3,750
Interest Revenue +$3,750

c. Cash +$111,250
Notes Receivable -$100,000
Interest Receivable -$11,250

d. Interest Revenue +$2,500
Interest Receivable +$2,500