please help me to solve part c. please explain and show formulas and be clear. thank you.

BACK CALCULATOR FULL SCREEN PRINTER VERSION NEXT , Exercise 14-23 (Part Level Submission) On December 31, 2020, Sheridan Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $4,200,000 note receivable by the following modifications: 1. Reducing the principal obligation from $4,200,000 to $3,360,000 2. Extending the maturity date from December 31, 2020, to January 1, 2024 3. Reducing the interest rate from 12% to 10% Barkley pays Interest at the end of each year. On January 1, 2024, Barkley Company pays $3,360,000 in cash to Sheridan Bank. Answer the following questions related to Sheridan Bank (creditor) (a) Your answer is correct. What interest rate should Sheridan Bank use to calculate the loss on the debt restructuring? (Round answer to o decimal places, e.g. 1896.) 90 Interest rate 12 (b) Your answer is correct. (1) Compute the loss that Sheridan Bank will suffer from the debt restructuring. (Round answer to o decimal places, e.g. 38,548.) Loss on restructuring of debt 1001404 (2) Prepare the journal entry to record the loss (If no entry is required, select "No Entry for the account bites and enter for the amounts Credit account tes are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 Bed Debt Expense 1001404 D Allowance for Doubtful 1001404 (c) Your answer is partially correct. Try again. Prepare the interest receipt schedule for Sheridan Bank after the debt restructuring (Round answers to o decimal places, e.g. 38,548.) SHERIDAN BANK Interest Receipt Schedule After Debt Restructuring Effective-Interest Rate Increase Carrying Cash Interest in Carrying Amount of Date Received Revenue Amount Note 12/31/20 12/31/21 MO D 12/31/22 12/31/23 Total