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 Debit Description Credit Date Notes Receivable-R. Elliot 24 Jun.8 19,000 v $ Accounts Receivable-R. Elliot 19,000 Received a 60-day, 8 percent note on account. 3,420 x $ Aug.7 Cash Interest Income 4,600 x Notes Receivable-R. Elliot 19,000 v To record receipt of principal plus interest from R. Elliot. Notes Receivable-B. Shore Compar + 22.000 v $ Sep.1 Accounts Receivable - B. Shore C + 22,000 v Received a 120-day, 9 percent note on account. Dec.16 Notes Receivable-C. Judd 18,400 v $ Accounts Receivable-C. Judd 18,400 v Received a 45-day, 10 percent note on account. Dec.30 Accounts Receivable - B. Shore Cor + 18,400 x $ Interest Income 1,980 x Notes Receivable-B. Shore Company 23,980 x To record dishonoring of B. Shore Company's note. v v Dec.31 Allowance for Doubtful Accounts + 23,980 x $ Accounts Receivable - B. Shore C + 17,120 x To write off B. Shore's account. Dec.31 Bad Debts Expense 2$ 41,100 v $ Allowance for Doubtful Accounts + 41,100 v To record allowance for uncollectible accounts. Dec.31 Interest Receivable 24 77 v $ Interest Income 77 v To accrue interest income on December 16 note. Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Received a $19,000, 60 day, eight percent note on account from R. Elliot. Jun.8 Received payment from R. Elliot on her note (principal plus interest). Aug.7 Received a $22,000, 120 day, nine percent note from B. Shore Company on account. Sep.1 Dec.16 Received a $18,400, 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 $22,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $18,500. Dec.31 Made the appropriate adjusting entries for interest.