Testbank Exercise 160 Vaughn Company sells large store-rack systems and frequently accepts notes receivable from customers as payment. Vaughn conducts a through credit check on its customers, and it charges a fairly low interest rate (1/2 of 1% payable monthly) on these notes. Vaughn has elected to use the fair value option for one of these notes and has the following data related to the carrying and fair value for its note. December 31, 2020 December 31, 2021 Carrying Value $88,200 70,560 Fair Value $83,300 74,480 Prepare the journal entry at December 31 (Vaughn's year-end) for 2020 and 2021, to record the fair value option for these notes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Testbank Exercise 160 Accounts Payable Accounts Receivable Advertising Expense Allowance for Doubtful Accounts Allowance for Sales Returns and Allowances Bad Debt Expense Cash Cash Over and Short Due from Factor Due to Customer Discount on Notes Payable Discount on Notes Receivable Equity Investments Freight-In Freight-Out Gain on Disposal of Land Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Investment Loss on Sale of Receivables Maintenance and Repairs Expense Miscellaneous Expenses No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Petty Cash Postage Expense Prepaid Postage Purchase Discounts Recourse Liability Sales Discounts Sales Discounts Forfeited Sales Returns and Allowances Sales Revenue Service Revenue Supplies Supplies Expenses Unearned Sales Revenue Notes Payable Date Notes Receivable Accounts Payable 12/31/20 Unrealized Holding Gain/Loss-Income 12/31/21 Accounts Receivable