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$)$: