Journal Entries for Accounts and Notes Receivable Dallmus, Inc , began business on January 1 Several transactions for the year follow May 2 Received a $28,800, 60 day, ten percent note on account from the Haskins Company Jul 1 Received payment from Haskins for its note plus interest Jul 1 Received a $61,000, 120 day, nine percent note from R Longo Company on account Oct 29 R Longo failed to pay its note Dec 9 Wrote off R Longos account as uncollectible Dallmus, Inc , uses the allowance method of providing for credit losses Dec 11 Received a $42,000, 90 day, nine percent note from R Canal on account Dec 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 $61,000 An analysis of aged accounts receivables indicates that the desired balance of the allowance account should be $12,500 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 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Received a, 60 day, 10 percent note in payment of account Jul 1 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Notes Receivable Haskins Company To record collection of principal and interest from Haskins Company Jul 1 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Received a 120 day, 9 percent note in payment of account Oct 29 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Notes Receivable R Longo Company To record dishonoring of note by R Longo Company Dec 9 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Wrote off R Longo's account Dec 11 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Received a 90 day, 9 percent note on account Dec 31 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal To record allowance for doubtful accounts Dec 31 Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal Accounts Receivable Haskins CompanyAccounts Receivable R Longo CompanyAccounts Receivable R CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable Haskins CompanyNotes Receivable R Longo CompanyNotes Receivable R Canal To accrue interest income on December 11 note

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Journal Entries for Accounts and Notes Receivable Dallmus, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $28,800,

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

May 2	Received a $28,800, 60 day, ten percent note on account from the Haskins Company.
Jul.1	Received payment from Haskins for its note plus interest.
Jul.1	Received a $61,000, 120 day, nine percent note from R. Longo Company on account.
Oct.29	R. Longo failed to pay its note.
Dec.9	Wrote off R. Longos account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses.
Dec.11	Received a $42,000, 90 day, nine percent note from R. Canal on account.
Dec.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 $61,000. An analysis of aged accounts receivables indicates that the desired balance of the allowance account should be $12,500.
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	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Received a, 60-day, 10 percent note in payment of account.
Jul.1	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Notes Receivable-Haskins Company
	To record collection of principal and interest from Haskins Company.
Jul.1	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Received a 120-day, 9 percent note in payment of account.
Oct.29	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Notes Receivable-R. Longo Company
	To record dishonoring of note by R. Longo Company.
Dec.9	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Wrote off R. Longo's account.
Dec.11	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Received a 90-day, 9 percent note on account.
Dec.31	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	To record allowance for doubtful accounts.
Dec.31	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	Accounts Receivable - Haskins CompanyAccounts Receivable-R. Longo CompanyAccounts Receivable-R. CanalAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-Haskins CompanyNotes Receivable-R. Longo CompanyNotes Receivable-R. Canal
	To accrue interest income on December 11 note.