eBook Print Question 1 Partially coreea Marx 0...out of 1.00 P Flag question Journal Entries for Accounts and Notes Receivable Austin, Inc., began business on January 1. Several transactions for the year follow: May Received a $30,000,60 day, ten percent note on account from the Hoskins Company JL Received payment from Haskins for its note plus interest Received a 561.000, 120 day, nine percent note from R. Longo Company on account Oct 29 Longo failed to pay its note Det 9 Wrote of R. Longa's account as uncollectible. Austin, Inc., uses the allowance method of providing for credito Dec 11 Received a 542.000, 90 day, 12 percent note from R. Canal on account Dec 31 Recorded expected credit fosses for the year by an adjusting entry, Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Art Dec.31 Made the appropriate adjusting entries for interest Debit 30,000 0 Credit 0 30,000 4 30,900 x 0 0 2,700 x 2,700 x 0 0 x 0 0 0 X 9 . OX 0 Date Description May 2 Notes Receivable-Haskins Company Accounts Receivable - Haskins Company Received a, 60-day, 10 percent note in payment of account Jul. 1 Cash Interest Income Notes Receivable-Haskins Company To record collection of principal and interest from Haskins Company. Jul. 1 Notes Receivable-R. Longo Company Accounts Receivable R. Longo Company Received a 120-day, 9 percent note in payment of account Oct.29 Accounts Receivable R. Longo Company Interest Income Notes Receivable R. Longo Company To record dishonoring of note by R. Longo Company Dec. 9 Allowance for Doubtful Accounts Accounts Receivable-R. Longo Company Wrote off R. Longo's account Dec 11 Notes Receivable-R. Canal Accounts Receivable-R. Canal Received a 90-day, 12 percent note on account Dec 31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for doubtful accounts Dec 31 Interest Receivable Interest Income To accrue interest income on December 11 notes e 0 0 X 0 OX OX 0 > 0 OX 0 > OX 07 OX