A company lends its supplier $160,000 for 3 years at a 10% annual interest rate. Interest payments are to be made twice a year. The entry to record this lending transaction includes a debit to:
a. Interest Receivable and a credit to Interest Revenue for $8,000.
b. Notes Receivable and a credit to Cash for $160,000.
c. Cash and a credit to Interest Revenue for $16,000.
d. Cash and a credit to Notes Payable for $160,000.