Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SHOW calulcations please Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received

SHOW calulcations please

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

Jun.8 Received a $20,000, 60 day, six percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received an $18,000, 120 day, seven 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. Shores 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 $24,500. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,300. 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 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Received a 60-day, 6 percent note on account. Aug.7 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Notes ReceivableR. Elliot Answer Answer To record receipt of principal plus interest from R. Elliot. Sep.1 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Received a 120-day, 7 percent note on account. Dec.16 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Received a 45-day, 10 percent note on account. Dec.30 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Notes ReceivableB. Shore Company Answer Answer To record dishonoring of B. Shore Company's note. Dec.31 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer To write off B. Shore's account. Dec.31 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer To record allowance for uncollectible accounts. Dec.31 Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer Answer Accounts Receivable - B. Shore Company Accounts ReceivableC. Judd Accounts ReceivableR. Elliot Allowance for Doubtful Accounts Bad Debts Expense Cash Interest Income Interest Receivable Notes ReceivableB. Shore Company Notes ReceivableC. Judd Notes ReceivableR. Elliot Answer Answer To accrue interest income on December 16 note.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Expert Systems And Artificial Intelligence In Internal Auditing

Authors: Daniel E. O'Leary, Paul R. Watkins

1st Edition

1558760865, 978-1558760868

More Books

Students also viewed these Accounting questions

Question

2. Define identity.

Answered: 1 week ago

Question

1. Identify three communication approaches to identity.

Answered: 1 week ago

Question

4. Describe phases of majority identity development.

Answered: 1 week ago