Weldon Corporation's fiscal year ends December 31. The following is a list of transactions Involving receivables...

Transcribed Image Text:

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 $3,000 were written off as uncollectible. The company uses the allowance method. 2022. 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 8% to be paid on March 30, May 30 Discounted the $33,000 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 $25,000. Terms of the sale are 2/10, n/38. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 Sold stock in a nonpublic company with a book value of $6,300 and accepted a $8,000 noninterest-bearing note with a discount rate of 9%. The $8,000 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 $920,000. The allowance had a balance of $25,000 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Accounts receivable of $3,000 were written off as uncollectible. The company uses the allowance method. Note: Enter debits before credits. < Prev 2 of 5 Next > 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 $3,000 were written off as uncollectible. The company uses the allowance method. 2022. 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 8% to be paid on March 30, May 30 Discounted the $33,000 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 $25,000. Terms of the sale are 2/10, n/38. Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. Aug. 31 Sold stock in a nonpublic company with a book value of $6,300 and accepted a $8,000 noninterest-bearing note with a discount rate of 9%. The $8,000 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 $920,000. The allowance had a balance of $25,000 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.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Accounts receivable of $3,000 were written off as uncollectible. The company uses the allowance method. Note: Enter debits before credits. < Prev 2 of 5 Next >