On December 31, 2020, Nash's Co. is in financial difficulty and cannot pay a note due that day. It is a $ 1,600,000 note with $ 160,000 accrued interest payable to Swifty, Inc. Swifty agrees to forgive the accrued interest, extend the maturity date to December 31, 2022, and reduce the interest rate to 4%. The present value of the restructured cash flows is $ 1,369,600. (a) Your answer is correct Prepare entry for the restructure on Nash's's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Interest Payable 160000 Notes Payable 128000 Gain on Restructuring of Debt 32000 Prepare entry for the payment of interest on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31 Notes Payable 64000 Cash 64000 Prepare entry for the restructure on Swifty's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit 230400 Interest Receivable