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Tamarisk Company owes $236,000 plus $21,500 of accrued interest to Vaughn State Bank. The debt is a 10-year, 10\% note, During 2025, Tamarisk's business deteriorated due to a faltering regional economy. On December 31, 2025, Vaughn State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $383,000, accumulated depreciation of $210,650, and a fair value of $215,000. (a) Prepare journal entries for Tamarisk Company and Vaughn State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are outomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Tamarisk Company_(Debtor): \begin{tabular}{l} Jecember \\ 1, 2025 Notes Payable \\ \hline Interest Payable \end{tabular} Accumulated Depreciation Machinery Machinery Gain on Disposat of Machinery Gain on Restructuring of Debt Vaughn State Bank (Creditor): \begin{tabular}{l|l|l|} lecember \\ 1,2025 & Machinery & \\ \hline \end{tabular} Alowance for Doubtful Accounts Vaughn State Bank (Creditor)i lecember Machinery 11,2025 Allowance for Doubtful Accounts Notes Receivable Interest Reccivable