Sarduchi Imports owes Radnor S&L $60 million under an 8% note with three years remaining to...

   

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Sarduchi Imports owes Radnor S&L $60 million under an 8% note with three years remaining to maturity. Due to financial difficulties of Sarduchi, the previous year's interest ($4.8 million) was not received. Radnor believes that the present value of all amounts it eventually will collect from Sarduchi is $29 million. Required: Compute the credit loss that the bank would record, and prepare a journal entry to record the credit loss as bad debt expense. Note: If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Record the credit loss for Radnor S&L. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Sarduchi Imports owes Radnor S&L $60 million under an 8% note with three years remaining to maturity. Due to financial difficulties of Sarduchi, the previous year's interest ($4.8 million) was not received. Radnor believes that the present value of all amounts it eventually will collect from Sarduchi is $29 million. Required: Compute the credit loss that the bank would record, and prepare a journal entry to record the credit loss as bad debt expense. Note: If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Record the credit loss for Radnor S&L. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit