Tamarisk Limited has bonds outstanding in the amount of $$137,000.$ The company has chosen to apply the fair value option in accounting for this liability. At the end of the current year, the company's credit risk has increased and therefore the fair value of its debt is $$96,900.$ Assume that the change in fair value is due solely to the change in credit risk.

Prepare the journal entries to revalue the bonds under the fair value option. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record the change in fair value of debt that is accounted for under the fair value option$)$

ASPE

$$

$$

$($To record the change in fair value of debt that is accounted for under the fair value option$)$