On January $1,2025,$ Nash Company issued a $$1,272,450,5-$year, zero$-$interest$-$bearing note to Crane Bank. The note was issued to yield $9\%$ annual interest. Unfortunately, during $2026$ Nash fell into financial trouble due to increased competition. After reviewing all available evidence on December $31,2026,$ Crane Bank decided that the loan was impaired. Nash will probably pay back only $$848,300$ of the principal at maturity.

$($a$)$

Prepare journal entries for both Nash Company and Crane Bank to record thos issuance of the note on January $1,2025.($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.$ 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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Nash Company $($Debtor$)$:

Notes Receivable

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