Journal Entries for Accounts and Notes Receivable Armstrong, Inc , began business on January 1 Several transactions for the year follow May 2 Received a $16,500, 60 day, ten percent note on account from the Holt Company Jul 1 Received payment from Holt for its note plus interest Jul 1 Received a $27,000, 120 day, ten percent note from B Rich Company on account Oct 29 B Rich failed to pay its note Dec 9 Wrote off B Richs account as uncollectible Armstrong, Inc , uses the allowance method of providing for credit losses Dec 11 Received a $25,000, 90 day, nine percent note from W Maling on account Dec 31 Recorded expected credit losses for the year by an adjusting entry The allowance for doubtful accounts has a debit balance of $28,300 as a result of accounts written off during this first year An analysis of aged accounts receivables indicates that the desired balance of the allowance account is $5,800 Dec 31 Made the appropriate adjusting entries for interest Required Record the foregoing transactions and adjustments in general journal form (Round all Interest Income calculations to the nearest dollar ) General Journal Date Description Debit Credit May 2 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Received a 60 day, 10 percent note in payment of account Jul 1 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Notes Receivable Holt Company Answer Answer To record collection of principal and interest from Holt Company Jul 1 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Received a 120 day, 10 percent note in payment of account Oct 29 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Notes Receivable B Rich Company Answer Answer To record dishonoring of note by B Rich Company Dec 9 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Wrote off B Rich's account Dec 11 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer Received a 90 day, 9 percent note on account Dec 31 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer To record allowance for doubtful accounts Dec 31 AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer AnswerAccounts Receivable Holt CompanyAccounts Receivable B Rich CompanyAccounts Receivable W MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Holt CompanyNotes Receivable B Rich CompanyNotes Receivable W Maling Answer Answer To accrue interest income on December 11 note

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Journal Entries for Accounts and Notes Receivable Armstrong, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $16,500,

Journal Entries for Accounts and Notes Receivable Armstrong, Inc., began business on January 1. Several transactions for the year follow:

May 2	Received a $16,500, 60 day, ten percent note on account from the Holt Company.
Jul.1	Received payment from Holt for its note plus interest.
Jul.1	Received a $27,000, 120 day, ten percent note from B. Rich Company on account.
Oct.29	B. Rich failed to pay its note.
Dec.9	Wrote off B. Richs account as uncollectible. Armstrong, Inc., uses the allowance method of providing for credit losses.
Dec.11	Received a $25,000, 90 day, nine percent note from W. Maling on account.
Dec.31	Recorded expected credit losses for the year by an adjusting entry. The allowance for doubtful accounts has a debit balance of $28,300 as a result of accounts written off during this first year. An analysis of aged accounts receivables indicates that the desired balance of the allowance account is $5,800.
Dec.31	Made the appropriate adjusting entries for interest.

Required Record the foregoing transactions and adjustments in general journal form. (Round all Interest Income calculations to the nearest dollar.)

General Journal
Date	Description	Debit	Credit
May 2	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Received a 60-day, 10 percent note in payment of account.
Jul.1	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Notes Receivable-Holt Company	Answer	Answer
	To record collection of principal and interest from Holt Company.
Jul.1	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Received a 120-day, 10 percent note in payment of account.
Oct.29	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Notes Receivable-B. Rich Company	Answer	Answer
	To record dishonoring of note by B. Rich Company.
Dec.9	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Wrote off B. Rich's account.
Dec.11	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	Received a 90-day, 9 percent note on account.
Dec.31	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	To record allowance for doubtful accounts.
Dec.31	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	AnswerAccounts Receivable - Holt CompanyAccounts Receivable-B. Rich CompanyAccounts Receivable-W. MalingAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Holt CompanyNotes Receivable-B. Rich CompanyNotes Receivable-W. Maling	Answer	Answer
	To accrue interest income on December 11 note.