Required information

When a note is honored, the payee debits the money received and credits both Notes Receivable and Interest Revenue. Dishonored notes are credited to Notes Receivable and debited to Accounts Receivable $($to the account of the maker in an attempt to collect$),$ and Interest Revenue is recorded for interest earned for the time the note is held.

Knowledge Check $01$

Louvers, Incorporated, 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.