On the maturity date, a company receives \$10,500 for a note receivable. The principal was \$10,000. What is the journal entry?

• A. Debit Cash \$10,500; Credit Notes Receivable \$10,500
• B. Debit Cash \$10,500; Credit Interest Revenue \$10,500
• C. Debit Cash \$10,500; Credit Notes Receivable \$10,000; Credit Interest Revenue \$500
• D. Debit Cash \$10,000; Credit Notes Receivable \$10,000

Answer: (C)