Current Attempt in Progress

On December $31,2025,$ American Bank enters into a debt restructuring agreement with Nash Company, which is now experiencing financial trouble. The bank agrees to restructure a $12\%,$ issued at par, $$4,020,000$ note receivable by the following modifications:

Reducing the principal obligation from $$4,020,000$ to $$3,216,000.$

Extending the maturity date from December $31,2025,$ to January $1,2029.$

Reducing the interest rate from $12\%$ to $10\%.$

Nash pays interest at the end of each year. On January $1,2029,$ Nash Company pays $$3,216,000$ in cash to American Bank.

Prepare the interest payment entry for Nash Company on December $31,2027.($Round answers to $0$ decimal places, e$.$g$.38,548.$ If no entry is required, select. $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date Account Titles and Explanation Credit

December

$31,2027$