Oriole Company has a loan receivable with a carrying value of $129500 at December 31,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Oriole Company has a loan receivable with a carrying value of $129500 at December 31, 2016. On January 1, 2017, the borrower, Sandhill Co., declares bankruptcy, and Oriole estimates that it will collect only 60% of the loan balance. Assume that on January 4, 2018, Oriole learns that Sandhill Co. has emerged from bankruptcy. As a result, Oriole now estimates that all but $12000 will be paid on the loan. Under IFRS, which of the following entries would be made on January 4, 2018? Loan Receivable 39800 Recovery of impairment Loss 39800 Loan Receivable 12000 Recovery of impairment Loss 12000 No journal entry is allowed under IFRS. 12000 Bad Debt Expense Impairment Loss 12000 Marigold Corp. has a loan receivable with a carrying value of $131000 at December 31, 2016. On January 1, 2017, the borrower, Cullumber Company, declares bankruptcy, and Marigold estimates that it will collect only 45% of the loan balance. Which of the following entries would Marigold make to record the impairment under IFRS? 72050 Loan Recovery Expense Loan Receivable 72050 58950 Impairment Loss Loan Receivable 58950 Loan Receivable 58950 Impairment Loss 58950 72050 Impairment Loss Loan Receivable 72050
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
