On June 1, 2019, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified them as held-to-maturity. In 2020, Francisco experienced financial difficulties and on Dec 31, 2020, based on an evaluation of the investment, Hansen determined that expected credit losses are $4,500. In 2021, Francisco improved its financial condition, and, on Dec 31, 2021, Hansen believed that expected credit losses would only be $2,600. Required: Prepare the journal entries for Hansen to record the above events under U.S. GAAP.

On June 1, 2019, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified them as held-to-maturity. In 2020 , Francisco experienced financial difficulties and on Dec 31,2020 , based on an evaluation of the investment, Hansen determined that expected credit losses are $4,500. In 2021 , Francisco improved its financial condition, and, on Dec 31, 2021, Hansen believed that expected credit losses would only be $2,600