Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Received a $17,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $20,000, 120 day, nine percent note from B. Shore Company on account. Jun.8 Dec.16 Received a $16,400, 45 day. ten percent note from C. Judd on account Dec.30 B. Shore Company failed to pay its note. Dec.31 Wrote off B. Shore's account as of providing for credit losses. Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off uncollectible. Lancaster, Inc., uses the allowance method during this first year have created a debit balance in the Allowance for Doubtful Accounts of $24,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,500. Dec.31 Made the appropriate adjusting entries for interest Required Record the foregoing transactions and adjustments in general journal form. (Use 360 days for all interest calculations. Round all Interest Income calculations to the nearest dollar.) General Journal Credit Debit Description Date 17,000 Notes Recelvable-R. Elliot Jun.8 17,000 0v Accounts Receivable-R. Elliot Received a 60-day. 8 percent note on account 0v 17,227 Aug.7 Cash 17.000 x 0v x Interest Receivable 227 x 0v Notes Recelvable-R. Elliot To record receipt of principal plus interest from R. Elliot Notes Receivable-B. Shore Compar Accounts Recelvable- B. Shore C e 20,000 0v Sep.1 20,000 0v Received a 120-day, 9 percent note on account 16.400 S Dec.16 Notes Receivable-B. Shore Compar 16,400 0 v Accounts Recelvable- B. Shore C Received a 45-day, 10 percent note on account 20.467 x 0v Dec.30 Allowance for Doubtful Accounts Accounts Receivable-R. Elliot Notes Recelvabe-B. Shore Company 20.000 x 0 467 x 0v To record dishonoring of B Shore Company's note 46.100 x Dec.31 Interest Recelvable BusinessCourse My Subscriptions Return to course Dec.31 Made the appropriate adjusting entries for interest. Required Record the foregoing transactions and adjustments in general journal form. (Use 360 days for all interest calculations. R Interest Income calculations to the nearest dollar.) General Journal Description Debit Credit Date Notes Receivable-R. Elliot Accounts Receivable-R. Elliot 0 v Jun.8 17,000 0 v 17,000 Received a 60-day, 8 percent note on account Aug.7 Cash 17,227 0v 0 v Interest Receivable 17.000 x Notes Receivable-R. Elliot 0 227 x To record receipt of principal plus interest from R. Elliot Notes Receivable-B. Shore Compar Sep.1 0 v 20,000 Accounts Receivable- B. Shore C 20,000 0 Received a 120-day, 9 percent note on account Dec16 Notes Receivable-B. Shore Compar 16,400 $ $ 0v Accounts Receivable- B. Shore C 16,400 0 Received a 45-day, 10 percent note on account Dec.30 Allowance for Doubtful Accounts 20,467x S 0 x Accounts Receivable-R. Elliot 0v 20,000 x x Notes Recelvable-B. Shore Company 0v 467x To record dishonoring of B. Shore Company's note. Dec.31 Interest Receivable 46.100 x S 0V x 0 46,100 x Accounts Receivable-C. Judd x To write off B. Shore's account Dec.31 Accounts Receivable-R. Elliot 68 x S 0 x 20 0 68 x Interest Income To record allowance for uncollectible accounts 0 xS Dec.31 Interest Receivable 0v Interest Income O x To accrue interest income on December 16 note. Check You have correctly selected 32
