Metlock Company owes $$179,000$ plus $$16,000$ of accrued interest to Bonita State Bank. The debt is a $10-$year, $10\%$ note. During $2022,$ Metlock's business deteriorated due to a faltering regional economy. On December $31,2022,$ Bonita State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $$348,000,$ accumulated depreciation of $$191,400,$ and a fair value of $$160,000.$

Prepare journal entries for Metlock Company to record this debt settlement. $($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 amount is entered. Do not indent manually.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

Metlock Company$($Debtor$)$:

December $$

$$