Question

P8-5A

Journal Entries for Accounts and Notes Receivable Lancaster Inc. began business Certain transactions for the year follow: L02, 4 Ps 5A. on January P8-8A. June 8 Received a $20,000, 60 day, six percent note on account from R. Elliot. Aug. 7 Received payment from R. Ell Sept. 1 Received an $18,000, 120 day, seven percent note from B. Shore Company on Dec. 16 Received a $14,400, 45 day, ten percent note from C. Judd on account. iot on her note (principal plus interest), 30 B. Shore Company failed to pay its note 31 Wrote off B. Shore's account as uncollectible. Lancaster, Inc. uses the allowance of providing for credit losses. Recorded expected credit losses for the year by an adjusting entry. Accounts during this first year have created a debit balance in the Allowance for Doubtful of $24,500. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,300. 31 Acco 31 Made the appropriate adjusting entries for interest. Required Record the foregoing transactions and adjustments in general journal form

Answer 1

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