The Nile Group is owed $$1,000,000$ by Scorpion Enterprises under an $8\%$ note with three years remaining to maturity. The prior year of interest was unpaid. Nile estimates credit losses with respect to this receivable and calculates that it will only receive amounts equal to a present value of $$880,000.$ The journal entry that O'Hara would make to record this transaction would include a credit loss as bad debt expense in the amount of:

Multiple Choice

$$0.$

$$80,000.$

$$200,000.$

$$220,000.$