Simonis Company, which uses IFRS, has a note receivable with a carrying value of $30,000 at December

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Simonis Company, which uses IFRS, has a note receivable with a carrying value of $30,000 at December 31, 2015. On January 2, 2016, the borrower declares bankruptcy, and Simonis estimates that only $25,000 of the note will be collected. Prepare the journal entry to record this loss.

Briefly describe the accounting for the loan subsequent to the bankruptcy under U.S. GAAP, assuming Simonis estimates that more than $25,000 can be repaid.

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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