31-Dec To Accrue interest income on December 16 note 31-Dec To Accrue interest income on December 16 note 6 16-Dec Received $28,800, 45 day, 10 percent note on account 30-Dec To record dishonoring of R. T. Matthews Company's note 31-Dec To write off R Matthews' Account 31-Dec To record allowance for doubtful accounts 1 2 a. Date Description General Journal Received $15,000, 60 day, 9 percent note on account 8-Jun Note Receivable-J Albert Accounts Receivable - J Albert To record receipt of principal plus interest from J Albert 7-Aug Cash Interest Income Notes receivable-J Albert (15,000 x .09 x 60/360 = $225 Received $40,000, 120 day 6 percent note on account 03 04 05 06 07 508 509 510 511 512 1-Sep 513 514 Debit Credit 15,000 15,000 PS-10A. Jo Accounts and Notes Receivable Philly. Inc., began business on January 1. LO2, 4 Certain transactions for the year follow: ME 8 Received a $15,000, 60 day, nine percent note on account from J. Albert. June Aug. Sept. 7 Received payment from J. Albert on his note (principal plus interest). 1 Received a $40,000, 120 day, six percent note from R.T. Matthews Company on account. Dec. 16 Received a $28,800, 45 day, ten percent note from D. LeRoy on account. 30 R.T. Matthews Company failed to pay its note. 31 Wrote off R.T. Matthews' account as uncollectible. Philly's, Inc., uses the allowance method of providing for credit losses. 31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the allowance for doubtful accounts of $45,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $42,000. 31 Made the appropriate adjusting entries for interest. Required Record the foregoing transactions and adjustments in general journal form