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  3. indigo co. owes $208,500 to sweet inc. the debt is

Indigo Co. owes $208,500 to Sweet Inc. The debt is a 10-year, 11% note. Because...

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Accounting

Indigo Co. owes $208,500 to Sweet Inc. The debt is a 10-year, 11% note. Because Indigo Co. is in financial trouble, Sweet Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $81,900 and a fair value of $147,900.a. Prepare the journal entry on Indigo's books for debt restructure.b. Prepare the journal entry on Sweet's books for debt restructure.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

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