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Weldon Corporation s fiscal year ends December 3 1 . The following is a list of transactions involving receivables that occurred during 2 0 2
Weldon Corporations fiscal year ends December The following is a list of transactions involving receivables that occurred during :
March Accounts receivable of $ were written off as uncollectible. The company uses the allowance method.
March Loaned an officer of the company $ and received a note requiring principal and interest at to be paid on March
May Discounted the $ note at a local bank. The banks discount rate is The note was discounted without recourse and the sale criteria are met.
June Sold merchandise to the Blankenship Company for $ Terms of the sale are
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Weldon uses the gross method to account for cash discounts.
July The Blankenship Company paid its account in full.
August Sold stock in a nonpublic company with a book value of $ and accepted a $ noninterestbearing note with a discount rate of The $ payment is due on February The stock has no ready market value.
December Weldon estimates that the allowance for uncollectible accounts should have a balance in it at yearend equal to of the gross accounts receivable balance of $ The allowance had a balance of $ at the start of
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