ACC 111: -Principles of Accounting I -Section 06 Fall 2017 myBusinessCourse Chap

Question

ACC 111: -Principles of Accounting I -Section 06 Fall 2017 myBusinessCourse Chapter 8 Homework usinessCourse Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc, began business on January 1. Certain transactions for the year follo Jun.8 Received a $32,000, 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 $38,000, 120 day, nine percent note from R.T. Matthews Company on account Dec.16 Received a $30,800, 45 day, ten percent note from D. Leroy on account Dec.30 RT. 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 47,200. An analysis of aged receivables indicates that the desired balance of the allowance account should be $42,000 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.)

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Debit Credit 7-Aug Cash A/c 32426.67 426.67 Notes Receivable-J albert A/c 32000 31-Dec Bad Debts A/c 5200 To Allowance for Doubtful debts 5200 31-Dec Interest receivable A/c 1140 Interest income 1140

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