eBook Print Qurbon 10 y correct Mark 46.00 out of 52,00 Festion Journal Entries for Accounts and Notes Receivable Austin, Inc, began business on January 1. Several transactions for the year follow May 2 Received a 130.000, 60 day. ten percent note on account from the Haskins Company JULI 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 R. Longo failed to pay its note Dec. Wrote of R. Longo's account as uncollectible. Austin, Inc. uses the allowance method of providing for credit losses. Dec 11 Received a $42.000 90 day, 12 percent note from R. Canal on account 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 Accounts of Dec 31 561,000. An analysis of aged accounts receivables indicates that the desired balance of the allowance account should be $13,200 Dec 31 Made the appropriate adjusting entries for interest 30,500 0 0 0 500 30,000 0 Jul. 1 61,000 0 61,000 63,033 X 2,033 x 61,000 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. 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 note. > 63,033 x 0 63,033 x > 42,000 0 0 42,000 74,200 0 74,200