Unique situation

Beth Chase

Recently had a donor make a substantial "loan" to the organization and then at year end "forgave" half of it.  Using best practice, how to enter this pledge and pledge/loan forgiveness is the question.  Anyone else experience this?  How do I show the forgiven part without "writing off" the pledge?

Marc Seleman

Why not just enter the forgiven portion in RE as a gift.  The people handling the accounting can make the necessary journal entries for how they want to handle the loan and forgivenes.