#7 Sold Stock with a book value of $5,300 and accepted a $6,400 non-interest-bearing note with a discount rate of 9% due on February 28,
#7 Sold Stock with a book value of $5,300 and accepted a $6,400 non-interest-bearing note with a discount rate of 9% due on February 28, 2022.
#8 To Record the accrual of interest earned on note receivable
#9 To record the accrual of bad debt expense
Weldon Corporation's fiscal year ends December 31. The following is a list of transactions Involving receivables that occurred during 2021: Mar. 17 Accounts receivable of $2,000 were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $24,060 and received a note requiring principal and interest at 8% to be paid on March 30, 2022. May 30 Discounted the $24,080 note at a local bank. The bank's discount rate is 9%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $15,600. Terms of the sale are 4/10, n/30. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 5old stock in a nonpublic company with a book value of $5,300 and accepted a $6, 406 noninterest-bearing note with a discount rate of 9%. The $6, 400 payment is due on February 28, 2022. The stock has no ready market value. Dec. 31 Weldon estimates that the allowance for uncollectible accounts should have a balance in it at year-end equal to 3% of the gross accounts receivable balance of $720,000. The allowance had a balance of $15,060 at the start of 2021. Required: 1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries Indicated. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field. Do not round Intermediate calculations and round your final answers to nearest whole dollar.) x Answer is complete but not entirely correct. No Date General Journal Debit Credit March 17, 2021 Allowance for uncollectible accounts 2,000 Accounts receivable 2,000 2 March 30, 2021 Notes receivable 24,000 Cash 24,000 3 May 30, 2021 Interest receivable 320 Interest revenue 320 May 30, 2021 Cash 23,976 Loss on sale of notes receivable 344 Interest receivable 320 Notes receivable 24,000 5 June 30, 2021 Accounts receivable O 15,000 Sales revenue 15,000 6 July 08, 2021 Cash 14,400 Sales discounts 600 into raraivable 15 non MA6 July 08, 2021 Cash 14,400 Sales discounts 600 Accounts receivable 15,000 7 August 31, 2021 Notes receivable 6,400 Discount on notes receivable 276 X Investments 5,300 Gain on sale of investments 824 X 8 December 31, 202 Interest receivable X 1.440 X Interest revenue 1.440 X 9 December 31, 202 Discount on notes receivable X 184 X Interest revenue X 184 X
