Sheffield Corp. sells office equipment on July 31, 2022, for $19,200 cash. The office equipment originally cost $73,400 and as of January 1, 2022, had accumulated depreciation of $42,400. Depreciation for the first 7 months of 2022 is $5,750. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest.extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of