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Use the Following Information to Answer Questions 7 and 8

Question 173

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Use the following information to answer Questions 7 and 8.
Johnstone Company has a loan receivable with a carrying value of $125,000 at December 31, 2013. On January 1, 2014, the borrower, Ralph Young Industries, declares bankruptcy, and Johnstone estimates that it will collect only 45% of the loan balance.
-Which of the following entries would Johnstone make to record the impairment under IFRS? Use the following information to answer Questions 7 and 8. Johnstone Company has a loan receivable with a carrying value of $125,000 at December 31, 2013. On January 1, 2014, the borrower, Ralph Young Industries, declares bankruptcy, and Johnstone estimates that it will collect only 45% of the loan balance. -Which of the following entries would Johnstone make to record the impairment under IFRS?

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