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Cullumber Company owes $ 2 0 1 , 0 0 0 plus $ 1 7 , 9 0 0 of accrued interest to Riverbed State

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Cullumber Company owes $201,000 plus $17,900 of accrued interest to Riverbed State Bank. The debt is a 10-year, 10% note. During 2020, Cullumber's business deteriorated due to a faltering regional economy. On December 31,2020, Riverbed State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $354,000, accumulated depreciation of $194,700, and a fair value of $179,000.
(a)
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Prepare journal entries for Cullumber Company and Riverbed State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Date Account Titles and Explanation
Debit
Credit
Cullumber Company_(Debtor):
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