Journal Entries for Accounts and Notes Receivable Dallmus, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $32,600, 60 day, ten percent note on account from the Haskins Company. Received payment from Haskins for its note plus interest. Jul.1 Jul.1 Received a $58,000, 120 day, ten percent note from R. Longo Company on account. Oct.30 R. Longo failed to pay its note. Dec.9 Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses. Dec.11 Received a $46,000, 90 day, nine percent note from R. Canal 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 $60,600 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 $15,600 Dec.31 Made the appropriate adjusting entries for interest. Date May 2 Description Received a, 60-day, 10 percent note in payment of account. Jul.1 4 4 Notes Receivable-Haskins Company To record collection of principal and interest from Haskins Company. Debit Credit $ $ Jul.1 o " $ Received a 120-day, 10 percent note in payment of account. Oct.30 $ $ Notes Receivable-R. Longo Company To record dishonoring of note by R. Longo Comany. Dec.9 0 $ O Wrote off R. Longo's account. Dec.11 $ Received a 90-day, 9 percent note on account. Dec 31 0 $ O To record allowance for doubtful accounts. Dec 31 To accrue interest income on December 11 note. 0 $ $