Question 2 Partially correct Mark 9.15 out of 14.00 Remove flag Journal Entries for Accounts and Notes Receivable Philly, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $15,000, 60 day, nine percent note on account from J. Albert Aug 7 Received payment from ). Albert on his note (principal plus interest). Sep.1 Received a $40,000. 120 day, six 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 $42,000. 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 Notes Receivable-J. Albert 15.000 x Accounts Receivable-J. Albert 0 15.000 x Received 60 day, 9 percent note on account. Aug 7 Cash Interest Income Notes Receivable-J. Albert To record receipt of principal plus interest from J. Albert. Sep.1 Notes Receivable-R.T. Matthews Accounts Receivable - R.T. Matth . Received a 120 day, 6 percent note on account. Dec. 16 Notes Receivable-D. Leroy Accounts Receivable-D. Leroy Received a 45-day, 10 percent note on account. Dec 30 Accounts Receivable - R.T. Matthew Interest Income Notes Receivable-R.T. Matthews 0 x To record dishonoring of R.T. Matthews's note. Dec 31 Allowance for Doubtful Accounts Accounts Receivable - R.T. Matth To write off R.T. Matthews's account. Dec.31 Bad Debts Expense Allowance for Doubtful Accounts To record allowance for uncollectible accounts. Dec 31 Interest Receivable 0 x Interest Income x To accrue interest income on December 16 note. Check