Assume that Flounder Inc. invests in a bond for $80,000. The bond was purchased at par and is accounted for using amortized cost. At year end, management has determined that there is no significant increase in credit risk, but that there is a 5% chance that the company will not collect 18% of the face value of the bond (which also represents the present value of the bond) in the next 12 months. The expected loss model is used. Prepare the required year-end journal entry. (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 0 for the amounts. List debit entry before credit entry.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount