Pomona Inc. began business on January 1. Certain transactions for the year follow:

June 8 Received a $30,000, 60 day, six percent note on account from R. Elliot

Aug. 7 Received payment from R. Elliot on her note (principal plus interest).

Sept 1 Received an $18,000, 120 day, seven percent note from B. shore Company on account.

Dec 16 Received a $14, 400, 45 day, eight percent note from C. Judd on account.

30 B. Shore Company failed to pay its note

31 Wrote off B. Shores account as uncollectible. Lanchaster, Inc. uses the allowance method of providing for credit losses.

31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during the first year and have created a debit balance in the allowance for doubtful Accounts of $24,500. An analysis of agreed receivables indicates that the desired balance of the allowance account should be $21,300.

31 Made the appreciate adjusting entries for interest.

Required:

Record the foregoing transactions and adjustments in general journal forms.

Answer rating: 100% (QA)

Solution Date General Journal Debit Credit Jun 8 Notes ReceivableRElliot 30000 Accounts ReceivableRE... View the full answer