Question
Weldon Corporations fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2016: Mar. 17 Accounts receivable of
Weldon Corporations fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2016: Mar. 17 Accounts receivable of $1,900 were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $21,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2017. May 30 Discounted the $21,000 note at a local bank. The banks discount rate is 8%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $14,000. Terms of the sale are 2/10, 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 $5,200 and accepted a $6,300 non interest-bearing note with a discount rate of 8%. The $6,300 payment is due on February 28, 2017. The stock has no ready market value. Dec. 31 Bad debt expense is estimated to be 2% of credit sales for the year. Credit sales for 2016 were $720,000. Required: 1. Prepare journal entries for each of the above transactions. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare any 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.)
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