On September 1, 2017 ACME Company lends $100,000 to another business and evidences this with a 12-month note with an annual interest rate of 7%. Principal and interest are due at the conclusion of the note. (a) Make the initial journal entry on September 1, 2017. (b) Make the adjusting journal entry for ACME on December 31, 2017. (c) Make the final journal entry for ACME on August 31, 2018

At December 31, Lydell Co reported accounts receivable of $350,000 and an allowance for uncollectible accounts of $800 (credit). An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjusting entry for uncollectible accounts would be: