Jasper makes a $35,000, 90-day, 8.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
A. Debit Cash $35,743.75; credit Interest Revenue $743.75; credit Notes Receivable $35,000.
B. Debit Cash $35,743.75; credit Notes Receivable for $35,743.75.
C. Debit Cash $37,975; credit Interest Revenue $2975, credit Notes Receivable $35,000.
D. Debit Notes Payable $35,000; Debit Interest Expense $2975; credit Cash $37,975.
E. Debit Cash for $35,000; credit Notes Receivable $35,000.
Answer: A
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