Canadian Tire Corporation is a general retailer with nearly 1,700 retail and gasoline outlets across Canada. Canadian Tire€™s customers can pay for purchases using a Canadian Tire credit card. The company occasionally offers special promotions that allow customers to purchase merchandise on credit and pay after six months or one year without paying interest on the amount due. Canadian Tire refers to credit card receivables as loans receivable. Its annual report for 2012 included the following disclosures related to its loans receivables and the related allowance for credit losses:

Required:
1. What amounts did Canadian Tire report as loans receivables on its statement of financial position at the end of 2012?
2. Prepare summary journal entries to record the transactions related to loans receivable in 2012. These include the write- off of receivables, recovery of receivables written off, and bad debt expense.

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12. Loans recelvable Quantitative information about the Company's loans receivable portiolãlo is as follows: Amount of Recolvables $4,0268 Total Principal in milions of dolars) Credit card loans Line of credit loans Personal loans Total Financial Services loans recoivable Dealer loans Other loans Total loans receivable Less: Long-tom portions Current portion of loans receivable 2012 2011 $4,234.3 7.5 0.5 4,242.3 623.7 8.8 3.3 4,038.9 628.7 8.8 4,873.7 4.676.4 504.7 $4.081.7 $4,265.7 1 Amounts shown are net of allowance for loan impairment. 2. Personal loans aro unsecured loans that are provided to qualdied oxisting credit card holders for terms of one to fve years. Personal loans have fixed monthly paymonts of principal and interest: howovor, the porsonal loans can be repaid at any time without penalty 3. Dealer loans issued by Franchise Trust (Note 24) 4. The long-term portion of loans recevable is included in long-term recevables and other assets and includes Dealer loans of $601.5 milion (2011- $87.5 milion). The gross impairment loss on loans receivable for the year endad December 29 2012, was $323.7 millon (2011, $352.0 million) Recovorioe of bad debts for the yoar ended December 29, 2012, wee $58.1 million (2011, $50.0 miion. 6.3.3 Allowance for credit losses and past due amounts In determining the recoverability of a loan receivable, the Company considers any change in the credit quality of the loan receivable from the date credit was initially granted up to the ond of the oporting period. The concentation of crodit risk is limited due to the customer base being large and unrelated The Company's allowances for credit losses are maintained at levels that are considered adequate to absorb future credit losses. A contnuity of the Company's allowances for loans receivable is as follows: (in milions of dollars) Balance, beginning of year Impairment for credit losses Recoveries Write-ofls Balance, end of year 2012 2011 $ 118.7 302.0 50.0 1331.7) 351.0) $ 118.7 265.6 58.1 $ 110.7 Credit card and ine of credit loan balances are written off when a payment is 180 days in arrears. Line of credit loans are considered impaired when a payment is over 90 days in arrears and are writton off when a payment is 180 days in aoars. Personal loans are considored impaired when a payment is over 00 days in arrears and are writen off when a payment is 365 days in arrears.