Exercise 14-26 Your answer is partially correct. Try again. Blue Co. owes $198,700 to Kingbird Inc. The debt is a 10-year, 11% note. Because Blue Co. is in financial trouble, Kingbird Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $83,200 and a fair value of $130,700. (a) Prepare the journal entry on Blue's books for debt restructure. (b) Prepare the journal entry on Kingbird's books for debt restructure. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (a) Blue Co.'s entry: x Notes Payable Land Gain on Disposal of Land Gain on Restructuring of D (b) Kingbird Inc. entry: Land Allowance for Doubtful Acc Notes Receivable Click if you would like to Show Work for this question: Open Show Work