View the step-by-step solution to:

Journal Entries for Accounts and Notes Receivable Jun.8 Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow:

Journal Entries for Accounts and Notes Receivable


Jun.8 Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow:


Aug.7 Received a $33,000, 60 day, eight percent note on account from J. Albert.


Sep.1 Received payment from J. Albert on her note (principal plus interest).


Dec.16 Received an $39,000, 120 day, nine percent note from R.T. Matthews Company on account.


Dec.30 Received a $31,800, 45 day, ten percent note from D. Leroy on account.


Dec.31 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

 

$48,200. An analysis of aged receivables indicates that the desired balance of the

 

allowance account should be $43,000.


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.)

Top Answer

Aug.7      Note Receivable - J. Albert                      33000         ... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online