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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?

Loan Receivable 4,500 Recovery of Impairment Loss 4,500

Loan Receivable 1,500 Recovery of Impairment Loss 1,500

Bad Debt Expense 1,500 Impairment Loss 1,500

No journal entry is allowed under IFRS.

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