Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end adjusting entry to accrue the $125 of interest owed on the note. The note is honored on November 27. Prepare the necessary November 27 entry for Louvers by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. If there are multiple debits or multiple credits, please enter the account titles in alphabetical order.

Relax

Respuesta :

Explanation:

The Journal Entry is shown below:-

Cash Dr,                              $15,750

To Interest revenue               $625

To Interest receivable            $125

To Note receivable                 $15,000

(Being cash is recorded)

Working Note :-

Interest revenue = Note receivable × Interest rate × Time period

= 15,000 × 10% × 150 ÷ 360

= $625

Ver imagen aquialaska