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 $2,400 were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $27,000 and received a note requiring principal and interest at 71 to be paid on March 30, 2022. May 30 Discounted the $27,000 note at a local bank. The bank's discount rate is 81. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $19,000. Terms of the sale are 3/10, 1/30. 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 $5,700 and accepted a $7,200 noninterest-bearing note with a discount rate of 81. The $7,200 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 $860,000. The allowance had a balance of $19,000 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.) No Date General Journal Debit Credit 1 March 17, 2021 2,400 Allowance for uncollectible accounts Accounts receivable 2,400 2 March 30, 2021 Notes receivable 27,000 Cash 27,000 3 315 May 30, 2021 Interest receivable Interest revenue 315 4 May 30, 2021 27,090 288 Cash Loss on sale of notes receivable Interest receivable Notes receivable 315 27,000 5 June 30, 2021 19,000 Accounts receivable Sales revenue 19,000 6 July 08, 2021 Cash $ 19,570 X 19.000 5 June 30, 2021 ACCOUnts receivable Sales revenue 19,000 19,570 6 July 08, 2021 Cash X Accounts receivable Sales discounts 7,200 7 August 31, 2021 Notes receivable Investments Discount on notes receivable Loss on sale of notes receivable 5,700 288 1.212 6,800 8 December 31, 202 Bad debt expense Allowance for uncollectible accounts 6,800 X 192 9 December 31, 202 Discount on notes receivable Interest revenue 192 1 Accounts receivable of $2,400 were written off as uncollectible. The company uses the allowance method. 2 Loaned an officer of the company $27,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2022. 3 Record the accrued interest revenue on the discounted note. 12 Record the cash received on the discounted note. 5 Sold merchandise to the Blankenship Company for $19,000. Terms of the sale are 3/10, n/30. Weldon uses the gross method to account for cash discounts. Note : = journal entry has been entered Record entry Clear entry View 5 Sold merchandise to the Blankenship Company for $19,000. Terms of the sale are 3/10, n/30. Weldon uses the gross method to account for cash discounts. 6 The Blankenship Company paid its account in full. 7 Sold stock with a book value of $5,700 and accepted a $7,200 noninterest-bearing note with a discount rate of 8% due on February 28, 2022. 12 8 To record the accrual of interest earned on note receivable. 9 To record the accrual of bad debt expense. Note : - journal entry has been entered Record entry Clear entry View
