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:

The journal entry is as follows:

Cash A/c Dr. $ 25,437.50

To Notes Receivable A/c $25,000

To Interest revenue A/c $437.50

(To record the collection of the note and interest at maturity)

Working notes:

Interest for 90 Days:

= Note value * Interest rate * Time period

= $25,000 * 0.07 * (90/360) days

= $437.50