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. Jun.8 Received payment from R. Elliot on her note (principal plus interest) Aug.7 Received a $20,000, 120 day, nine percent note from B. Shore Company on account. Sep.1 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 uncollectible. Lancaster, Inc., uses the allowance method of providing for credit losses. 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 $24,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,500. Made the appropriate adjusting entries for interest. Dec.31 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.) 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 Description Debit Credit Date 17,000 $ Notes Receivable-R. Elliot Jun.8 0 Accounts Receivable-R. Elliot 0 17,000 Received a 60-day, 8 percent note on account. 17,227 $ $ Aug.7 Cash 0 Interest Receivable 17,000 0 Notes Receivable-R. Elliot 227 0 To record receipt of principal plus interest from R. Elliot. Notes Receivable-B. Shore Compar 20,000 $ $ Sep.1 0 0 v Accounts Receivable - B. Shore C 20,000 Received a 120-day, 9 percent note on account. Dec.16 Notes Receivable-B. Shore Compar Accounts Receivable B. Shore C 16,400 $ $ 0 x 0 16,400 x Received a 45-day, 10 percent note on account. 20,467 $ Dec.30 Allowance for Doubtful Accounts $ 0 x Accounts Receivable-R. Elliot 20,000 x 0 Notes Receivable-B. Shore Company 0 467 To record dishonoring of B. Shore Company's note. 46,100 $ Dec.31 Interest Receivable $ 0 0 v Accounts Receivable-C. Judd 46,100 x To write off B. Shore's account. 68 $ Dec.31 Accounts Receivable-R. Elliot $ 0 Interest Income 0 68 x To record allowance for uncollectible accounts. 0 x S Dec.31 Interest Receivable $ 0 Interest Income 0 0 x To accrue interest income on December 16