Jasper makes a $50,000, 90-day, 9.0% 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 $51,125.00; credit Interest Revenue $1125.00; credit Notes Receivable $50,000.
B. Debit Cash for $50,000; credit Notes Receivable $50,000.
C. Debit Notes Payable $50,000; Debit Interest Expense $4500; credit Cash $54,500.
D. Debit Cash $54,500; credit Interest Revenue $4500, credit Notes Receivable $50,000.
E. Debit Cash $51,125.00; credit Notes Receivable for $51,125.00.
Answer: A
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