Answer:
B) debit Notes Receivable for the face value of the note.
Explanation:
Whenever there is interest quoted on note receivables then, only the face value of such note is debited as because the interest is credited as an income only, when it is accrued, and cannot be recorded as an asset at the time of receipt of note receivables. This is because of the prudent principle that all expenses are recorded when they are to occur, but revenues are recorded only when there is 100% assurance that it will be collected.
Accordingly, statement B is correct.
