Reference no: EM131594860

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