Elbow Company sells $$100,000$ of $12\%,16-$year bonds for $97$ on April $1,2020.$ The market rate of

interest on that day is $12\frac{1}{2}\%.$ Interest is paid each year on April $1.$ Elbow Company uses

the straight$-$line amortization method. Write the adjusting entry required at December $31,2020.$

$($Record debits first, then credits. Explanations are not required. Hold all decimals for

interim calculations. Round your final answers to the nearest whole dollar.$)$