Answer:
Dr Cash $25,500
Cr Interest Revenue $500
Cr Notes Receivable $25,000
Explanation:
Based on the information we were told Jasper makes the amount of $27,000 which include 90-day and 8.0% cash loan to Clayborn Co, which means that Jasper's Journal entry to record the collection of the note and interest at maturity should be:
Dr Cash $25,500
(25,000+500)
Cr Interest Revenue $500
(25,000*8%*90/360)
Cr Notes Receivable $25,000
