On May 17, Bruno Olive Co. accepted a $6,500, 8%, 90-day note from a customer. On June 11, the note was discounted at 10%. At maturity date, the note was dishonored and the bank charged a $25 protest fee. The amount that Bruno Olive Co. would debit to Notes Receivable Dishonored is

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The face value of the note is $6,500. The interest for 90 days at 8% is $130 (calculated as $6,500 * 8% * 90/360). The total amount due at maturity is $6,630 ($6,500 + $130). Since the note was dishonored, Bruno Olive Co. would debit Notes Receivable Dishonored for the total amount due plus the protest fee, which is $6,630 + $25 = $6,655.