On April 1, 2020, Welsch Company sold merchandise to Customer Rodriguez for $43,200, terms 2/10, n/30. Because of nonpayment by Rodriguez, Welsch received a $43,200, 10%, 12-month note dated May 1, 2020. The stated rate and the market rate are equal. The companys annual reporting period ends December 31. Customer Rodriguez paid the note in full, plus cash interest, on its maturity date.

Required a. Prepare all entries for Welsch related to the above transactions, including any year-end adjustments. Welsh uses the gross method for cash discounts. Date Account Name Dr. Cr. April 1, 2020 0 0 0 0 May 1, 2020 0 C 0 0 Dec. 31, 2020 0 0 0 April 30, 2021 0 0 43,200 0 Interest Receivable 0 0 0 0 b. Show what should be presented on the 2020 income statement and balance sheet. Income Statement, 2020 Sales revenue 0 Interest revenue S 0 Balance Sheet, December 31, 2020 Note receivable Interest receivable 0