EllisonCompany sells large store-rack systems and frequently accepts notes receivable from customers as payment.Ellisonconducts a through credit check on its customers, and it charges a fairly low interest rate (1/2 of 1% payable monthly) on these notes.Ellisonhas elected to use the fair value option for one of these notes and has the following data related to the carrying and fair value for its note.

Carrying Value Fair Value

December 31, 2020 $90,000 $85,000

December 31, 2021 72,000 76,000

Prepare the journal entry at December 31 (Ellison's year-end) for 2020 and 2021, to record the fair value option for these notes.