Sarduchi Imports owes Radnor S&L $$50$ million under an $8\%$ note with three years remaining to maturity. Due to financial difficulties of Sarduchi, the previous year's interest $($$$4$ million$)$ was not received. Radnor believes that the present value of all amounts it eventually will collect from Sarduchi is $$25$ million.

Required:

Compute the credit loss that the bank would record, and prepare a journal entry to record the credit loss as bad debt expense.