Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $15,000, 60
Journal Entries for Accounts and Notes Receivable Pittsburgh, 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 J. Albert. |
Aug.7 | Received payment from J. Albert on his note (principal plus interest). |
Sep.1 | Received a $36,000, 120 day, seven percent note from R.T. Matthews Company on account. |
Dec.16 | Received a $28,800, 45 day, ten percent note from D. LeRoy on account. |
Dec.30 | R.T. Matthews Company failed to pay its note. |
Dec.31 | Wrote off R.T. Matthews account as uncollectible. Pittsburgh, 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 $45,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $41,000. |
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 |
Jun.8 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
Received 60 day, 8 percent note on account. | |||
Aug.7 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
Notes ReceivableJ. Albert | Answer | Answer | |
To record receipt of principal plus interest from J. Albert. | |||
Sep.1 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
Received a 120 day, 9 percent note on account. | |||
Dec.16 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
Received a 45-day, 10 percent note on account. | |||
Dec.30 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
Notes ReceivableR.T. Matthews | Answer | Answer | |
To record dishonoring of R.T. Matthews's note. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
To write off R.T. Matthews's account. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
To record allowance for uncollectible accounts. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts ReceivableD. LeroyAccounts ReceivableJ. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes ReceivableR.T. MatthewsNotes ReceivableD. LeroyNotes ReceivableJ. Albert | Answer | Answer | |
To accrue interest income on December 16 note. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started