Answer and Explanation:
The journal entry is shown below:
On July 9
Cash Dr $7,585
To Interest revenue $185
To Notes receivable $7,400
(Being the entry recorded on maturity date is recorded)
For recording this we debited the cash as it increased the assets and credited the interest revenue and notes receivable as it increased the revenue and decreased the assets
The interest revenue is
= Amount × rate of interest × number of days ÷ total number of days in a year
= $7,400 × 10% × 90 days ÷ 360 days
= $185
