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20-08-2020
Business

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Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be

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Tundexi Tundexi

22-08-2020

Answer:

Date Journal Entry Debit Credit

Cash $25,437.50

Interest Revenue $437.50

Note Receivable $25,000

Workings

Interest = $25,000 * 7% * 90/360 = $437.50

Cash received = $25437.50

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