For each of the following independent events, describe the appropriate accounting treatment. In each scenario, assume that the year-end financial statements have not yet been issued. Specifically state whether the event should be reported in the financial statements and/or only in the notes. Briefly explain your answer.

1. An existing customer declared bankruptcy in March 2021, just prior to the 2020 year-end financial statements being issued. The year-end financial statement showed a receivable of $250,000 from this customer.