Jordan River Laundry uses the following chart of accounts:

Cash Laundry equipment Furniture and fixture Laundry Supplies

Office Supplies Prepaid Rent Allowances for Accounts Payable
Doubtful Accounts
Loan Payable Delivery Vehicle Wages Expenses Accounts Receivable
Notes Payable Laundry Services Advances from Utilities Expenses
Revenue Clients
Repairs Expenses Utilities Payable Notes Receivable Jordan, Drawing
Interest Receivable Jordan, Capital Interest Income Interest Expense
Depreciation Accumulated Accumulated Accumulated
expense Depreciation – Depreciation – Depreciation –
Furniture and Delivery Vehicle Laundry Equipment
Fixtures
Interest Payable Laundry Supplies Office Supplies Doubtful Accounts
Expenses Expenses Expense
 In the case of Jordan River Laundry, the following pieces of information
were obtained regarding accounts that require adjusting journal entries:
 Notes Receivable – It bears an interest of 10% and has a term of 45 days.
 Loan Payable – It bears an interest of 12% and has a term of 180 days.
 Laundry Supplies – Eighty percent of the laundry supplies, net of returns,
were used up in September.
 Furniture and Fixtures – It is the policy of Jordan River Laundry to
depreciate furniture and fixtures using the following terms: no salvage
value, useful life of five years, and full month depreciation on the month of
purchase.
 Landry Equipment – It is the policy of Jordan River Laundry to depreciate
laundry equipment using the following terms: 10% salvage value, useful life
of five years and full month depreciation on the month of purchase.
 Delivery vehicle – It is the policy of Jordan River Laundry to depreciate
delivery vehicle using the following terms: 10% salvage value, useful life of
10 years, and full month depreciation on the month of purchase.
 Accounts receivable – Doubtful accounts are estimated at 2% of the
outstanding accounts receivable.
With these pieces of information, the adjusting journal entries dated September
30, 2015 would be as follows.