On January 1, 2019, Fourth Company issued a $1,200,000, 5 year, zero interest-bearing note to Comerica Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2020 Fourth fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2020, Comerica Bank decided that the loan was impaired. Fourth will probably pay back only $750,000 of the principal due at maturity.

1. Prepare Comerica Banks journal entry for the initial transaction.