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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
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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.

Required:
Prepare the necessary November 27 entry for Louvers.

User Katang
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1 Answer

7 votes

Answer:

Entry for November 27 is given below

Step-by-step explanation:

Note receivable = $15,000

Interest receivable = $125

Interest Revenue = $15,000 x 10% x 180/360

Interest Revenue = $750 - $125 = $625

Entry

DEBIT CREDIT

Cash $15,750

Interest receivable $125

Interest Revenue $625

Note receivable $15,000

User SMka
by
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