ournal Entries for Accounts and Notes ReceivableDallmus, Inc., began business on January 1. Several transactions for the year follow:May 2Received a $31,800, 60 day, ten percent note on account from the Haskins Company.Jul.1Received payment from Haskins for its note plus interest.Jul.1Received a $57,000, 120 day, ten percent note from R. Longo Company on account.Oct.30R. Longo failed to pay its note.Dec.9Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses.Dec.11Received a $45,000, 90 day, nine percent note from R. Canal on account.Dec.31Recorded 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 $14,600Dec.31Made the appropriate adjusting entries for interest.

Journal entries are regarded as the first stage of the accounting process which records all the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 accounts receivables indicates that the desired balance
	of the allowance account is $14,600
Dec.31	Made the appropriate adjusting entries for interest.

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