red stakes

Hi all

I have a question.

My Friend hit his ball off the tee. I goes into a hazzard marked buy red stakes. Hits a tree. We are sure of the point of entry. But after searching the hazzard we find the ball 20 yards back of the point of entry still in the same hazzard.

My friend wants to take a drop. Where is the drop made? At the point of entry or where the ball was finally located in the hazzard?

Thank!

Rule 26-1 c states:

c. As additional options available only if the ball last crossed the margin of a lateral water hazard, drop a ball outside the water hazard within two club-lengths of and not nearer the hole than (i) the point where the original ball last crossed the margin of the water hazard or (ii) a point on the opposite margin of the water hazard equidistant from the hole.

So it's the point the original ball last crossed the margin of the water hazard (point of entry)