Question

On December 31, 2017, BLANK Company borrowed $67,008 from BLANK Bank, signing a 5-year, $103,100 zero-interest-bearing note. The note was issued to yield 9% interest. Unfortunately, during 2019, BLANK company began to experience financial difficulty. As a result, at December 31, 2019, BLANK Bank determined that it was probable that it would receive back only $77,325 at maturity. The market rate of interest on loans of this nature is now 10%.

Prepare the entry to record the issuance of the loan by BLANK Bank on December 31, 2017. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Prepare the entry, if any, to record the impairment of the loan on December 31, 2019, by BLANK Bank. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019

Answer 1

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relit Debit Accoumt Titles and ExPomatm Pns ale Lo3 L00 Notes eceivable Oiscaunt anrotes eceivable g1-Dec2017 36092 w 6F008 CoLsh Alc (সন্চ ২ম-बमट P%०)৯২ नू) 31-Dec-2019 Bud Debt Expense $l9903 lo3 l00x 0.74218 1- F325x0213 Aloace es Bad pebt CTe ecord $19903 bad debt ExPemse) pUF@ 91. 3d yeare 03218

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