Moontake Corporation holds a $250,000 note receivable from Golden Company. Based on present value computations, it now

Question:

Moontake holds a $250,000 note receivable from Golden Company. Based on present value computations, it now appears that the Golden Company note is impaired and that Golden will only be able to pay back 87% of the principal at maturity. Prepare the journal entry for Moontake to record the impairment.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...