Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $34,000, 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 $40,000, 120 day, nine percent note from R.T. Matthews Company on account. Dec.16 Received a $32,800, 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 $49,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $44,000. 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 Answer Answer Answer Answer Answer Answer Received a, 60-day, 8 percent note on account. Aug.7 Answer Answer Answer Answer Answer Answer Notes Receivable-J. Albert Answer Answer To record receipt of principal plus interest from J. Albert. Sep.1 Answer Answer Answer Answer Answer Answer Received a 120-day, 9 percent note on account. Dec.16 Answer Answer Answer Answer Answer Answer Received a 45-day, 10 percent note on account. Dec.30 Answer Answer Answer Answer Answer Answer Notes Receivable-R.T. Matthews Answer Answer To record dishonoring of R.T. Matthews note. Dec.31 Answer Answer Answer Answer Answer Answer To write off R.T. Matthews account. Dec.31 Answer Answer Answer Answer Answer Answer To record allowance for uncollectible accounts. Dec.31 Answer Answer Answer Answer Answer Answer To accrue interest income on December 16 note.

Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $34,000, 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 $40,000, 120 day, nine percent note from R.T. Matthews Company on account. Dec.16 Received a $32,800, 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 $49,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $44,000. 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 Answer Answer Answer Answer Answer Answer Received a, 60-day, 8 percent note on account. Aug.7 Answer Answer Answer Answer Answer Answer Notes Receivable-J. Albert Answer Answer To record receipt of principal plus interest from J. Albert. Sep.1 Answer Answer Answer Answer Answer Answer Received a 120-day, 9 percent note on account. Dec.16 Answer Answer Answer Answer Answer Answer Received a 45-day, 10 percent note on account. Dec.30 Answer Answer Answer Answer Answer Answer Notes Receivable-R.T. Matthews Answer Answer To record dishonoring of R.T. Matthews note. Dec.31 Answer Answer Answer Answer Answer Answer To write off R.T. Matthews account. Dec.31 Answer Answer Answer Answer Answer Answer To record allowance for uncollectible accounts. Dec.31 Answer Answer Answer Answer Answer Answer To accrue interest income on December 16 note.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Journal Entries for Accounts and Notes Receivable
Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow:

Jun.8	Received a $34,000, 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 $40,000, 120 day, nine percent note from R.T. Matthews Company on account.
Dec.16	Received a $32,800, 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
	$49,200. An analysis of aged receivables indicates that the desired balance of the
	allowance account should be $44,000.
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	Answer	Answer	Answer
	Answer	Answer	Answer
	Received a, 60-day, 8 percent note on account.
Aug.7	Answer	Answer	Answer
	Answer	Answer	Answer
	Notes Receivable-J. Albert	Answer	Answer
	To record receipt of principal plus interest from J. Albert.
Sep.1	Answer	Answer	Answer
	Answer	Answer	Answer
	Received a 120-day, 9 percent note on account.
Dec.16	Answer	Answer	Answer
	Answer	Answer	Answer
	Received a 45-day, 10 percent note on account.
Dec.30	Answer	Answer	Answer
	Answer	Answer	Answer
	Notes Receivable-R.T. Matthews	Answer	Answer
	To record dishonoring of R.T. Matthews note.
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To write off R.T. Matthews account.
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To record allowance for uncollectible accounts.
Dec.31	Answer	Answer	Answer
	Answer	Answer	Answer
	To accrue interest income on December 16 note.

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