On December $31,2023,$ Flint Inc. is in financial difficulty and cannot pay a $$358,000$ note $($with $$35,800$ accrued interest payable$)$ to Carla Vista Corp. Carla Vista agrees to forgive the accrued interest, extend the maturity date to December $31,2025,$ and reduce the interest rate to $5\%.$ The present value of the restructured cash flows is $$299,288.$

$($a$)$

Your answer is correct.

Prepare entries for the restructure on Flint's books. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Account Titles

Debit

Credit

Interest Payable

Notes Payable

$358000$

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