Three years ago, Morris loaned Alma $$5,000($Year $1)$ with the understanding that the loan would be repaid in two years. Last year $($Year $3)$ Alma filed for bankruptcy, and Morris learned that he would receive $$0\mathrm{.}10$ on the dollar. In the current year, Year $4,$ the final settlement was made, and Morris received $$300.$ Assuming the loan is a nonbusiness bad debt, how should Morris account for the loan?