(Answered) Question - travis loaned garth a friend 60000 in 2014 with

Accounting

Question - Travis loaned Garth (a friend) $60,000 in 2014 with the agreement that the loan would be repaid in two years. In 2015, Garth filed for bankruptcy without having made any payments on the loan at all. In 2015, Travis learned that he could expect to receive $0.50 on the dollar. In 2016, final settlement was made and Travis received $12,000. Assuming the loan is a nonbusiness bad debt, how should Travis account for the bad debt?

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