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.
-Assume that on January 4, 2015, Johnstone learns that Ralph Young Industries has emerged from bankruptcy. As a result, Johnstone now estimates that all but $11,500 will be paid on the loan. Under IFRS, which of the following entries would be made on January 4, 2015?

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The Answer of 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.
-Assume that on January 4, 2015, Johnstone learns that Ralph Young Industries has emerged from bankruptcy. As a result, Johnstone now estimates that all but $11,500 will be paid on the loan. Under IFRS, which of the following entries would be made on January 4, 2015?

Use the Following Information to Answer Questions 7 and 8