Question
Assume that on January 5, 2021, Harrison learns that Thomas Clark Imports has emerged from bankruptcy. As a result, Harrison now estimates that all but
Assume that on January 5, 2021, Harrison learns that Thomas Clark Imports has emerged from bankruptcy. As a result, Harrison now estimates that all but $1,500 will be repaid on the loan. Under IFRS, which of the following entries would be made on January 5, 2021?
a.Loan Receivable4,500
Recovery of Impairment Loss4,500
b.Loan Receivable1,500
Recovery of Impairment Loss1,500
c.Bad Debt Expense1,500
Impairment Loss1,500
d.No journal entry is allowed under IFRS.
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Financial Accounting An Introduction
Authors: Pauline Weetman
4th Edition
0273703404, 978-0273703402
