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InTrouble company was experiencing financial difficulties. It owed DoingWell company $70,000 plus 3 years interest...

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Accounting

InTrouble company was experiencing financial difficulties. It owed DoingWell company $70,000 plus 3 years interest totaling $16,800. DoingWell has offered to restructure the debt by forgiving the unpaid interest, reducing the principal to $65,000, and extending the maturity date 4 years with interest payments at 4%. What journal entry would be made for the next year? Does InTrouble owe more or less now?

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