On August $31,$ Crane Co$.$ partially refinanced $$425,000$ of its outstanding $10\%$ note payable made one year ago to Dugan State Bank by paying $$425,000$ plus $$42,500$ interest, having obtained the $$467,500$ by using $$126,250$ cash and signing a new one$-$year $$375,000$ note discounted at $9\%$ by the bank.

$(a)$

Make the entry to record the partial refunding. Assume Crane Co$.$ makes reversing entries when appropriate. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts. List all debit entries before credit entries.$)$