Recording and Reporting Transactions with Short- Term, Interest-Bearing Note Receivable paid the note in full, plus cash interest, on its maturity date. Required a. Prepare entries for Welsch on April 1, May 1, and December 31 (year-end adjustment). Welsch uses the gross method for cash discounts. b. Identify which accounts and amounts should be presented on the current year annual income statement and December 31 year-end balance sheet (ignoring cash). c. Record the entry on April 30 of the following year for the receipt of payment on the