Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021: No Date Debit Credit 1 March 17, 2021 General Journal Allowance for uncollectible accounts Accounts receivable 3,500 3,500 2 March 30, 2021 33,000 Notes receivable Cash 33,000 31 3 May 30, 2021 Interest receivable oooooo oooo 220 X Interest revenue Mar. 17 Accounts receivable of $3,500 were written off as uncollectible. The company uses the allowance method. 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, 2022. 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 $30,000. Terms of the sale are 3/10, n/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 $6,800 and accepted a $7,800 noninterest-bearing note with a discount rate of 9%. The $7,800 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 $970,000. The allowance had a balance of $30,000 at the start of 2021. 220 4 May 30, 2021 30,728 x 2,492 X Cash Loss on sale of notes receivable Interest receivable Notes receivable 220 x 33,000 5 June 30, 2021 30,000 Accounts receivable Sales revenue 30,000 OOOOO 6 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.) July 08, 2021 Cash Sales discounts 29,100 900 Accounts receivable 30,000 7 August 31, 2021 7,800 702 X Journal entry worksheet Notes receivable Discount on notes receivable Investments Gain on sale of investments 6.800 298 X * OOOO 8 x 29,100 % To record the accrual of interest earned on note receivable. December 31, 202 Bad debt expense Allowance for uncollectible accounts 29,100 x 9 x 234 X Note: Enter debits before credits. . December 31, 202 Discount on notes receivable Interest revenue x 234 X Date General Journal Debit Credit December 31, 2021 Bad debt expense 29,100 Allowance for uncollectible accounts 29,100 To record the accrual of bad debt expense. Record entry Clear entry View general journal Note: Enter debits before credits. Date General Journal December 31, 2021 (Discount on notes receivable Interest revenue Credit Debit 234 234
