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Journal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $18,000, 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 $21,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $17,000, 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. Shore's 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   $25,600. An analysis of aged receivables indicates that the desired balance of the   allowance account should be $22,500. Dec.31 Made the appropriate adjusting entries for interest. RequiredRecord 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 - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 60-day, 8 percent note on account.     Aug.7 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Notes Receivable-R. Elliot Answer Answer   To record receipt of principal plus interest from R. Elliot.     Sep.1 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 120-day, 9 percent note on account.     Dec.16 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 45-day, 10 percent note on account.     Dec.30 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Notes Receivable-B. Shore Company Answer Answer   To record dishonoring of B. Shore Company's note.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To write off B. Shore's account.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To record allowance for uncollectible accounts.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To accrue interest income on December 16 note.

Journal Entries for Accounts and Notes ReceivableLancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $18,000, 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 $21,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $17,000, 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. Shore's 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   $25,600. An analysis of aged receivables indicates that the desired balance of the   allowance account should be $22,500. Dec.31 Made the appropriate adjusting entries for interest. RequiredRecord 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 - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 60-day, 8 percent note on account.     Aug.7 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Notes Receivable-R. Elliot Answer Answer   To record receipt of principal plus interest from R. Elliot.     Sep.1 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 120-day, 9 percent note on account.     Dec.16 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Received a 45-day, 10 percent note on account.     Dec.30 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   Notes Receivable-B. Shore Company Answer Answer   To record dishonoring of B. Shore Company's note.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To write off B. Shore's account.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To record allowance for uncollectible accounts.     Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer   To accrue interest income on December 16 note.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section21.1: Accruals
Problem 1WT
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Journal Entries for Accounts and Notes Receivable
Lancaster, Inc., began business on January 1. Certain transactions for the year follow:

Jun.8 Received a $18,000, 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 $21,000, 120 day, nine percent note from B. Shore Company on account.
Dec.16 Received a $17,000, 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. Shore's 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
  $25,600. An analysis of aged receivables indicates that the desired balance of the
  allowance account should be $22,500.
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 - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  Received a 60-day, 8 percent note on account.    
Aug.7 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  Notes Receivable-R. Elliot Answer Answer
  To record receipt of principal plus interest from R. Elliot.    
Sep.1 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  Received a 120-day, 9 percent note on account.    
Dec.16 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  Received a 45-day, 10 percent note on account.    
Dec.30 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  Notes Receivable-B. Shore Company Answer Answer
  To record dishonoring of B. Shore Company's note.    
Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  To write off B. Shore's account.    
Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  To record allowance for uncollectible accounts.    
Dec.31 AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  AnswerAccounts Receivable - B. Shore CompanyAccounts Receivable-C. JuddAccounts Receivable-R. ElliotAllowance for Doubtful AccountsBad Debts ExpenseCashInterest IncomeInterest ReceivableNotes Receivable-B. Shore CompanyNotes Receivable-C. JuddNotes Receivable-R. Elliot Answer Answer
  To accrue interest income on December 16 note.    
 
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