Answer:
Debit Interest Receivable $525
Credit Interest Revenue $525
Step-by-step explanation:
Preparation of the journal entry when the company does not receive any interest payments
Debit Interest Receivable $525
Credit to Interest Revenue $525
Calculated as:
Monthly interest revenue=$90,000*7%*(1/12)
Monthly interest revenue=$525
Therefore At the end of each month in which the company does not receive any interest payments, the company should Debit Interest Receivable $525 and Credit Interest Revenue $525