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. |
Required
Record the foregoing transactions and adjustments in general
journal form. (Use 360 days for all interest calculations. Round
all Interest Income calculations to the nearest dollar.)
General Journal | |||
---|---|---|---|
Date | Description | Debit | Credit |
Jun.8 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
Received a, 60-day, 8 percent note on account. | |||
Aug.7 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
Notes Receivable-J. Albert | Answer | Answer | |
To record receipt of principal plus interest from J. Albert. | |||
Sep.1 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
Received a 120-day, 9 percent note on account. | |||
Dec.16 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
Received a 45-day, 10 percent note on account. | |||
Dec.30 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
Notes Receivable-R.T. Matthews | Answer | Answer | |
To record dishonoring of R.T. Matthews note. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
To write off R.T. Matthews account. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
To record allowance for uncollectible accounts. | |||
Dec.31 | AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer |
AnswerAccounts Receivable - R.T. Matthews CompanyAccounts Receivable-D. LeroyAccounts Receivable-J. AlbertAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-R.T. MatthewsNotes Receivable-D. LeroyNotes Receivable-J. Albert | Answer | Answer | |
To accrue interest income on December 16 note. |
General Journal | |||
Date | Description | Debit | Credit |
Jun.8 | Notes Receivable-J. Albert | $ 32,000 | |
Accounts Receivable-J. Albert | $ 32,000 | ||
Received a, 60-day, 8 percent note on account. | |||
Aug.7 | Cash | $ 32,427 | |
Interest Income (32000 x 8%/360 x 60) | $ 427 | ||
Notes Receivable-J. Albert | $ 32,000 | ||
To record receipt of principal plus interest from J. Albert. | |||
Sep.1 | Notes Receivable-R.T. Matthews | $ 38,000 | |
Accounts Receivable - R.T. Matthews | $ 38,000 | ||
Received a 120-day, 9 percent note on account. | |||
Dec.16 | Notes Receivable-D. Leroy | $ 30,800 | |
Accounts Receivable-D. Leroy | $ 30,800 | ||
Received a 45-day, 10 percent note on account. | |||
Dec.30 | Accounts Receivable - R.T. Matthews | $ 39,140 | |
Interest Income (38000 x 9% /360 *120 | $ 1,140 | ||
Notes Receivable-R.T. Matthews | $ 38,000 | ||
To record dishonoring of R.T. Matthews note. | |||
Dec.31 | Allowance for Doubtful Accounts | $ 39,140 | |
Accounts Receivable - R.T. Matthews | $ 39,140 | ||
To write off R.T. Matthews account. | |||
Dec.31 | Bad debts Expenses (47200 + 42000) | $ 89,200 | |
Allowance for Doubtful Accounts | $ 89,200 | ||
To record allowance for uncollectible accounts. | |||
Dec.31 | Interest Receivable (30800 x 10%/360 x 15) | $ 128 | |
Interest Income | $ 128 | ||
To accrue interest income on December 16 note. | |||
Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions...
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,...
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...
Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $15,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Sep.1 Received a $18,000, 120 day, nine 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...
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...
Flag this question for future merece Journal Entries for Credit Losses At January 1, the Blake Company had the following accounts on its books: Accounts Receivable $130,000 Debit Allowance for Doubtful Accounts $7,000 Credit During the year, credit sales were $850,000 and collections on account were $794,000. The following transactions, among others occurred during the year Jan. 11 Wrote off. Woll's account, $32000 Apr 29 Wrote off B. Avery's account, $2.000 Nov.15 Received 51.000 from B. Avery to pay a...
The following transactions are from Ohlm Company. Problem 9-5A Analyzing and journalizing notes receivable transactions C2 C3 P4 T Year 1 Dec. 16 Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. Check Feb 14, C interest Revenue, $108 May 31. C Interest Revenue, $122 Year 2 Feb. 14 Received Todd's payment of principal and interest on...
Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability of Noncollection 0-30 days past due $94,000 1% 31-60 days past due 24,000 2% 61-120 days past due 15,000 5% 121-180 days past due 10,000 10% Over 180 days past due 8,000 25% $151,000 The company handles credit losses using the allowance...
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1Dec.16Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable.31Made an adjusting entry to record the accrued interest on the Todd note.Year 2Feb.14Received Todd’s payment of principal and interest on the note dated December 16.Mar.2Accepted a $6,100, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.17Accepted a $2,400, 30-day, 7% note in granting Ava...
Journal Entries for Credit Losses At the beginning of the year, the Dallas Company had the following accounts on its books: Accounts Receivable $264,000 Debt Allowance for Doubtful Accounts $16.500 Credit During the year, credit sales were $2,346,000 and collections on account were $2,350,000. The following transactions, among others, occurred during the year: Feb.17 Wrote off R St. John's account, $7,500 May 28 Wrote off G Herberger's account $4800 Oct 13 Received 1,200 from G. Herberger who is in bankruptcy...
The ledger of Larkspur, Inc. at the end of the current year shows Accounts Receivable $89,000; Credit Sales $830,000; and Sales Returns and Allowances $50,000 (a) If Larkspur uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Larkspur determines that Matisse $700 balance is uncollectible (b) If Allowance for Doubtful Account has a credit balance of $1,400 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts...