Big Time uses the aged receivable allowance method to estimate their credit losses. From past history they believe the rates are

Current, over 30 days, over 60 days ,over 90 days, over 120 days ,

2% 5% 15% 30% 75%

Required: What is the implied interest rate on the note to Absorbent Products? What journal entry would you record at December 31, year 1 for all the new notes? What disclosures are required? What is the value of the Dairy Whip Note Receivable? What would be the amounts allocated each year to interest and the note? (you can prepare an amortization table to show the values). What is the journal entry for year 3? Prepare the year end entry for the accounts receivable loss on impairment estimate. Assume the Allowance for expected credit losses has a $25,000 DR balance before any of the adjustments above. Prepare a financial statement note.