Exercise 14-25 On December 31, 2017, the Flint Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $3,500,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,500,000 to $2,360,000. 2. Extending the maturity date from December 31, 2017, to January 1, 2021. 3. Reducing the interest rate from 12% to 10%. Barkley pays interest at the end of each year. On January 1, 2021, Barkley Company pays $2,360,000 in cash to Flint Bank. Answer the following questions related to Flint Bank (creditor). Your answer is partially correct. Try again. Compute the loss Flint Bank will suffer under this new term modification. (Round answer to 0 decinal places, e.g. 38,548.) Loss on restructuring of debt 1253367 Prepare the journal entry to record the loss on Flint's books. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when annount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit December 31, 201 Bad Debt Expense 1253367 i T Allowance for Doubtful 1253367