On December $31,2025,$ Whispering Company borrowed $$65,652$ from Paris Bank, signing a $5-$year, $$115,700$ zero$-$interest$-$bearing note. The note was issued to vield $12\%$ interest. Unfortunately, during $2027,$ Whispering began to experience financial difficulty. As a result, at December $31,2027.$ Paris Bank determined that it was probable that it would receive back only $$86,775$ at maturity. The market rate of interest on loans of this nature is now $13\%.$

$($a$)$

Your answer is correct:

Prepare the entry to record the issuance of the loan by Paris Bank on December $31,2025.($Round present value foctor calculations to $5$ decimal places, es$.1\mathrm{.}25124$ and final answers to $0$ dedinal places, es$.5,275.$ If no entry is required, select. No Entry for the occount titles and enter $0$ for the amounts. Credit account titles are outornatically indented witen the amount is entered. Do not indent manuallk: List all deblt entries before credit entries.$)$

Date Account Titles and Explanation

Dec. $31.2025$

Notes Recelvable

Discount on Notes Receivable

$($b$)$

Your answer is partially correct:

Prepare the entry, If any, to record the impairment of the loan on December $31,2027,$ by Paris Bank. $($Round present value foctor calculations to $5$ decimal places, es$.125124$ and final answers to $0$ decinal places, es$.5,275.$ If no entry is required, select $"$No$.$ Entry" for the occount titles and enter O for the omounts. Credit account titles are outomatically indented when the amount is entered. Do not indent: monually List debit entry before credit entrx$)$

Date Account Titles and Explanation

Debit

Credit