Jasper makes a $25,000, 90-day, 7% 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 $25,437.50; credit Interest Revenue $437.50; credit Notes Receivable $25,000.
B. Debit Cash $26,750; credit Interest Revenue $1,750, credit Notes Receivable $25,000.
C. Debit Cash $25,437.50; credit Notes Receivable for $25,437.50.
D. Debit Notes Payable $25,000; Debit Interest Expense $1,750; credit Cash $26,750.
E. Debit Cash for $25,000; credit Notes Receivable $25,000.


Answer: A

Business

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