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Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $32,000, 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 $32,000, 60 day, eight percent note on account from J. Albert. |
Aug.7 | Received payment from J. Albert on her note (principal plus interest). |
Sep.1 | Received an $38,000, 120 day, nine percent note from R.T. Matthews Company on account. |
Dec.16 | Received a $30,800, 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 | |
$47,200. An analysis of aged receivables indicates that the desired balance of the | |
allowance account should be $42,000. | |
Dec.31 | Made the appropriate adjusting entries for interest.
If you could do more than just the answers and explain how you got to those numbers that would be very helpful! |
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