Question - On April 12, Hong Company agrees to accept a 60-day, 10%, $6,000 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date? (Use 360 days a year.)

Debit Cash $6,100; credit Interest Revenue $100; credit Notes Receivable $6,000.

Debit Cash $6,100; credit Interest Revenue $100; credit Notes Payable $6,000.

Debit Notes Payable $6,000; credit Interest Expense $100, credit Cash $5,900.

Debit Notes Payable $6,000; debit Interest Expense $100; credit Cash $6,100.

Debit Notes Payable $6,000; debit Interest Expense $150; credit Cash $6,150.