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Journal Entries for Accounts and Notes Receivable Pittsburgh, Inc., began business on January 1. Certain transactions for the year follow: Jun.8 Received a $32,000, 60 day, eight percent note on account from ). Albert Aug.7 Received payment from ). 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. Date Description Debit Credit $ Jun.8 Received a, 60-day, 8 percent note on account. $ $ Aug. 7 $ Notes Receivable.). Albert To record receipt of principal plus interest from J. Albert. $ Sep.1 > Received a 120-day, 9 percent note on account. Dec.16 $ $ Received a 45-day, 10 percent note on account. Dec.30 $ $ $ > To record allowance for uncollectible accounts. Dec.31 4) $ $ To accrue interest income on December 16

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