Johnstone Company has a loan receivable with a carrying value of $125,000 at December 31, 2019. On January 1, 2020, the borrower, Ralph Young Industries, declares bankruptcy, and Johnstone estimates that it will collect only 45% of the loan balance.

Assume that on January 4, 2021, Johnstone learns that Ralph Young Industries has emerged from bankruptcy. As a result, Johnstone now estimates that all but $11,500 will be paid on the loan. Under IFRS, which of the following entries would be made on January 4, 2021? 

a. Loan Receivable                       57 250 

    Recovery of Impairment Loss                          57,250 

b. Loan Receivable                       11,500 

    Recovery of Impairment Loss                          11,500 

c. Bad Debt Expense                    11,500 

    Impairment Loss                                              11,500 

d. No journal entry is allowed under IFRS