Abbra Bank agrees to reduce the principal to $1.7 million and require interest only in the third year at 4%, waiving the first 2 years' worth of interest. (Hint: Refer to Chapter 3 for tips on calculating and use the time value of money tables.) Assume that the bank had not previously recognized any loss on impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) On the books of Sandhill Corporation: Account Titles and Explanation Notes Payable Gain on Restructuring of Debt Notes Payable On the books of Abbra Bank: Account Titles and Explanation Modification Gain or Loss Notes Receivable Debit 3000000 Debit 870242 Credit 1,312,712 Credit 870242

Abbra Bank agrees to reduce the principal to $1.7 million and require interest only in the third year at 4%, waiving the first 2 years' worth of interest. (Hint: Refer to Chapter 3 for tips on calculating and use the time value of money tables.) Assume that the bank had not previously recognized any loss on impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) On the books of Sandhill Corporation: Account Titles and Explanation Notes Payable Gain on Restructuring of Debt Notes Payable On the books of Abbra Bank: Account Titles and Explanation Modification Gain or Loss Notes Receivable Debit 3000000 Debit 870242 Credit 1,312,712 Credit 870242

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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