Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $17,000, 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 $20.000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $16,400, 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 $24,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,500. 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.)

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Journal Entries for Accounts and Notes Receivable
Lancaster, Inc., began business on January 1. Certain transactions for the year follow:
Received a $17,000, 60 day, eight percent note on account from R. Elliot.
Aug.7 Received payment from R. Elliot on her note (principal plus interest).
Jun.8
Sep.1 Received a $20,000, 120 day, nine percent note from B. Shore Company on account.
Dec.16 Received a $16,400, 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
$24,600. An analysis of aged receivables indicates that the desired balance of the
allowance account should be $21,500.
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
Jun.8
Aug 7 Cash
Sep.1
Description
Notes Receivable-R. Elliot
V
Accounts Receivable-R. Elliot
수 ✓
Received a 60-day. 8 percent note on account.
+
✓
+
x
Interest Receivable
Notes Receivable-R. Elliot
To record receipt of principal plus interest from R. Elliot.
Notes Receivable-B. Shore Compar
Dec.31 interest Receivable
V
Accounts Receivable - B. Shore C =
Received a 120-day, 9 percent note on account.
Dec.16 Notes Receivable-B. Shore Compar
x
x
Accounts Receivable - B. Shore C#
Received a 45-day, 10 percent note on account.
Dec.30 Allowance for Doubtful Accounts
O
Accounts Receivable-R. Elliot
Notes Receivab e-B. Shore Company
+ x
To record dishonoring of B. Shore Company's note,
X
X
S
$
$
$
$
S
Debit
17,000 $
0✔
17,227 ✓ S
0✓
0✓
20,000 $
0✓
16,400 S
20.467 x S
0✓
04
46.100 x $
Credit
0✔
17,000✔
0✔
17,000 x
227 x
0✓
20,000 ✓
0V
16,400
04
20,000 x
467 x
Transcribed Image Text:Journal Entries for Accounts and Notes Receivable Lancaster, Inc., began business on January 1. Certain transactions for the year follow: Received a $17,000, 60 day, eight percent note on account from R. Elliot. Aug.7 Received payment from R. Elliot on her note (principal plus interest). Jun.8 Sep.1 Received a $20,000, 120 day, nine percent note from B. Shore Company on account. Dec.16 Received a $16,400, 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 $24,600. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,500. 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 Jun.8 Aug 7 Cash Sep.1 Description Notes Receivable-R. Elliot V Accounts Receivable-R. Elliot 수 ✓ Received a 60-day. 8 percent note on account. + ✓ + x Interest Receivable Notes Receivable-R. Elliot To record receipt of principal plus interest from R. Elliot. Notes Receivable-B. Shore Compar Dec.31 interest Receivable V Accounts Receivable - B. Shore C = Received a 120-day, 9 percent note on account. Dec.16 Notes Receivable-B. Shore Compar x x Accounts Receivable - B. Shore C# Received a 45-day, 10 percent note on account. Dec.30 Allowance for Doubtful Accounts O Accounts Receivable-R. Elliot Notes Receivab e-B. Shore Company + x To record dishonoring of B. Shore Company's note, X X S $ $ $ $ S Debit 17,000 $ 0✔ 17,227 ✓ S 0✓ 0✓ 20,000 $ 0✓ 16,400 S 20.467 x S 0✓ 04 46.100 x $ Credit 0✔ 17,000✔ 0✔ 17,000 x 227 x 0✓ 20,000 ✓ 0V 16,400 04 20,000 x 467 x
Required
Record the foregoing transactions and adjustments in general journal form. (Use 360 days for all interest calculations. R
Interest Income calculations to the nearest dollar.)
General Journal
Date
Jun.8 Notes Receivable-R. Elliot
Aug.7 Cash
Sep.1
Description
Accounts Receivable-R. Elliot
✔
Received a 60-day, 8 percent note on account.
✔
Interest Receivable
Notes Receivable-R. Elliot
To record receipt of principal plus interest from R. Elliot.
Notes Receivable-B. Shore Compar ✓
✔
Accounts Receivable - B. Shore C✔
Received a 120-day, 9 percent note on account.
Dec 16 Notes Receivable-B. Shore Compar x
Accounts Receivable - B. Shore C = x
Received a 45-day, 10 percent note on account.
Dec.30 Allowance for Doubtful Accounts ÷ x
Accounts Receivable-R. Elliot
x
Dec.31 Interest Receivable
Notes Receivable-B. Shore Company
To record dishonoring of B. Shore Company's note.
x
: x
Accounts Receivable-C. Judd
To write off B. Shore's account.
Dec.31 Accounts Receivable-R. Elliot
x
Check
Interest Income
x
To record allowance for uncollectible accounts.
Dec.31 Interest Receivable
: ✓
0 ✓
Interest Income
To accrue interest income on December 16 note.
$
$
S
S
S
S
S
S
Debit
17,000 S
0✔
17,227 S
05
05
20,000 $
0✔
16,400 S
0✔
20,467 x S
0✔
05
46.100 x S
05
68 x S
0✓
0x5
05
Credit
0✓
17,000 ✓
0✔
17,000 x
227 x
0✔
20,000 ✓
0✓
16,400 ✓
0✔
20,000 x
467 x
0✔
46,100 x
05
68 x
05
0x
4
Transcribed Image Text:Required Record the foregoing transactions and adjustments in general journal form. (Use 360 days for all interest calculations. R Interest Income calculations to the nearest dollar.) General Journal Date Jun.8 Notes Receivable-R. Elliot Aug.7 Cash Sep.1 Description Accounts Receivable-R. Elliot ✔ Received a 60-day, 8 percent note on account. ✔ Interest Receivable Notes Receivable-R. Elliot To record receipt of principal plus interest from R. Elliot. Notes Receivable-B. Shore Compar ✓ ✔ Accounts Receivable - B. Shore C✔ Received a 120-day, 9 percent note on account. Dec 16 Notes Receivable-B. Shore Compar x Accounts Receivable - B. Shore C = x Received a 45-day, 10 percent note on account. Dec.30 Allowance for Doubtful Accounts ÷ x Accounts Receivable-R. Elliot x Dec.31 Interest Receivable Notes Receivable-B. Shore Company To record dishonoring of B. Shore Company's note. x : x Accounts Receivable-C. Judd To write off B. Shore's account. Dec.31 Accounts Receivable-R. Elliot x Check Interest Income x To record allowance for uncollectible accounts. Dec.31 Interest Receivable : ✓ 0 ✓ Interest Income To accrue interest income on December 16 note. $ $ S S S S S S Debit 17,000 S 0✔ 17,227 S 05 05 20,000 $ 0✔ 16,400 S 0✔ 20,467 x S 0✔ 05 46.100 x S 05 68 x S 0✓ 0x5 05 Credit 0✓ 17,000 ✓ 0✔ 17,000 x 227 x 0✔ 20,000 ✓ 0✓ 16,400 ✓ 0✔ 20,000 x 467 x 0✔ 46,100 x 05 68 x 05 0x 4
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