Journal Entries for Accounts and Notes Receivable Lancaster, inc, began business on January 1. Certain transactions for the year follow Jun 8 Received a $15,000, 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 $18,000, 120 day, nine percent note from B. Shore Company on account. Dec 16 Received a $14,400, 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 $22,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $19,500. 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 di Date Jun.8 Aug 7 Sep.1 Dec. 16 General Journal Description Debit Credit 45 05 0 0 Received a 60-day, 8 percent note on account. Notes Receivable-R. Elliot To record receipt of principal plus interest from R. Ellot Received a 120 day, 9 percent note on account. o $ 05 0 0 0 0 $ 05 0 0 0 05 0 D