Question - On December 31, 2017, Blossom Company borrowed $71,214 from Paris Bank, signing a 5-year, $120,000 zero-interest-rate note. The note was issued to yield 11% interest. Unfortunately, during 2019, Blossom began to experience financial difficulty. As a result, at December 31, 2019, Paris Bank determined that it was probable that it would collect only $90,000 at maturity. The market rate of interest on loans of this nature is now 12%.
Prepare the entry (if any) to record the impairment of the loan on December 31, 2019, by Paris Bank.
List of Accounts -
Accounts Payable
Accounts Receivable
Advertising Expense
Allowance for Doubtful Accounts
Bad Debt Expense
Cash
Cash Over and Short
Due from Factor
Due to Customer
Discount on Notes Payable
Discount on Notes Receivable
Freight-In
Freight-Out
Gain on Disposal of Land
Interest Expense
Interest Payable
Interest Receivable
Interest Revenue
Inventory
Land
Loss on Sale of Receivables
Miscellaneous Expenses
No Entry
Notes Payable
Notes Receivable
Office Expense
Owner's Drawings
Petty Cash
Postage Expense
Purchase Discounts
Recourse Liability
Sales Discounts
Sales Discounts Forfeited
Sales Revenue
Service Revenue
Supplies
Supplies Expenses
Unearned Sales Revenue
Attachment:- Factor tables.rar