ournal Entries for Accounts and Notes Receivable Dallmus, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $31,800, 60 day, ten percent note on account from the Haskins Company. Jul.1 Received payment from Haskins for its note plus interest. Jul.1 Received a $57,000, 120 day, ten percent note from R. Longo Company on account. Oct.30 R. Longo failed to pay its note. Dec.9 Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses. Dec.11 Received a $45,000, 90 day, nine percent note from R. Canal on account. Dec.31 Recorded expected credit losses for the year by an adjusting entry. The Allowance for Doubtful Accounts has a debit balance of $59,600 as a result of accounts written off during this first year. An analysis of aged accounts receivables indicates that the desired balance of the allowance account is $14,600 Dec.31 Made the appropriate adjusting entries for interest.
ournal Entries for Accounts and Notes Receivable Dallmus, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $31,800, 60 day, ten percent note on account from the Haskins Company. Jul.1 Received payment from Haskins for its note plus interest. Jul.1 Received a $57,000, 120 day, ten percent note from R. Longo Company on account. Oct.30 R. Longo failed to pay its note. Dec.9 Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses. Dec.11 Received a $45,000, 90 day, nine percent note from R. Canal on account. Dec.31 Recorded expected credit losses for the year by an adjusting entry. The Allowance for Doubtful Accounts has a debit balance of $59,600 as a result of accounts written off during this first year. An analysis of aged accounts receivables indicates that the desired balance of the allowance account is $14,600 Dec.31 Made the appropriate adjusting entries for interest.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 5AP
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ournal Entries for Accounts and Notes Receivable
Dallmus, Inc., began business on January 1. Several transactions for the year follow:
May 2 | Received a $31,800, 60 day, ten percent note on account from the Haskins Company. |
Jul.1 | Received payment from Haskins for its note plus interest. |
Jul.1 | Received a $57,000, 120 day, ten percent note from R. Longo Company on account. |
Oct.30 | R. Longo failed to pay its note. |
Dec.9 | Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method |
of providing for credit losses. | |
Dec.11 | Received a $45,000, 90 day, nine percent note from R. Canal on account. |
Dec.31 | Recorded expected credit losses for the year by an adjusting entry. The Allowance for |
Doubtful Accounts has a debit balance of $59,600 as a result of accounts written off during | |
this first year. An analysis of aged |
|
of the allowance account is $14,600 | |
Dec.31 | Made the appropriate |
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