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Question - On August 31, Latty Co. partially refunded $482,000 of its outstanding 10% note payable made one year ago to Dugan State Bank by paying $482,000 plus $48,200 interest, having obtained the $530,200 by using $137,990 cash and signing a new one-year $431,000 note discounted at 9% by the bank.
Make the entry to record the partial refunding. Assume Latty Co. makes reversing entries when appropriate.
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