Journal Entries for Accounts and Notes Receivable Lancaster, Inc , began business on January 1 Certain transactions for the year follow Jun 8 Received a $19,000, 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 $22,000, 120 day, nine percent note from B Shore Company on account Dec 16 Received a $18,400, 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 $18,500 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 Date Description Debit Credit Jun 8 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer Received a 60 day, 8 percent note on account Aug 7 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer Notes Receivable R Elliot Answer Answer To record receipt of principal plus interest from R Elliot Sep 1 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer Received a 120 day, 9 percent note on account Dec 16 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer Received a 45 day, 10 percent note on account Dec 30 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer Notes Receivable B Shore Company Answer Answer To record dishonoring of B Shore Company's note Dec 31 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer To write off B Shore's account Dec 31 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer To record allowance for uncollectible accounts Dec 31 AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer AnswerAccounts Receivable B Shore CompanyAccounts Receivable C JuddAccounts Receivable R ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable B Shore CompanyNotes Receivable C JuddNotes Receivable R Elliot Answer Answer To accrue interest income on December 16 note

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Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $19,000, 60

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

Jun.8	Received a $19,000, 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 $22,000, 120 day, nine percent note from B. Shore Company on account.
Dec.16	Received a $18,400, 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 $18,500.
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
Date	Description	Debit	Credit
Jun.8	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	Received a 60-day, 8 percent note on account.
Aug.7	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	Notes Receivable-R. Elliot	Answer	Answer
	To record receipt of principal plus interest from R. Elliot.
Sep.1	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	Received a 120-day, 9 percent note on account.
Dec.16	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	Received a 45-day, 10 percent note on account.
Dec.30	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	Notes Receivable-B. Shore Company	Answer	Answer
	To record dishonoring of B. Shore Company's note.
Dec.31	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	To write off B. Shore's account.
Dec.31	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	To record allowance for uncollectible accounts.
Dec.31	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot	Answer	Answer
	To accrue interest income on December 16 note.