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,eee were written off as uncollectible. The company uses the allowance method. 30 Loaned an officer of the company $24,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2022. May 30 Discounted the $24,000 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 $15,000. Terms of the sale are 4/10, 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 $5,300 and accepted a $6,400 noninterest-bearing note with a discount rate of 9%. The $6,480 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 $720, eee. The allowance had a balance of $15,000 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.) Answer is complete but not entirely correct. Credit No 1 Date March 17, 2021 General Journal Allowance for uncollectible accounts Accounts receivable Debit 2,000 2,000 March 30, 2021 Notes receivable 24,000 Cash 24,000 May 30, 2021 320 Interest receivable Interest revenue 320 00 00 00 00 00 May 30, 2021 23,976 344 Cash Loss on sale of notes receivable Interest receivable Notes receivable 320 24,000 June 30, 2021 15.000 Accounts receivable Sales revenue 15,000 July 08, 2021 Cash Sales discounts Accounts receivable 14,400 600 15,000 OOO 6,400 August 31, 2021 Notes receivable Discount on notes receivable Investments Gain on sale of investments 184 5,300 916 21,600 X December 31, 202 Bad debt expense Allowance for uncollectible accounts 21,600 124 x December 31, 202 Discount on notes receivable Interest revenue 124 View transaction list Journal entry worksheet KO O O O O O 7 O O > Sold stock with a book value of $5,300 and accepted a $6,400 noninterest- bearing note with a discount rate of 9% due on February 28, 2022. Note: Enter debits before credits. Credit Date General Journal August 31, 2021 Notes receivable Discount on notes receivable Investments Debit 6,400 184 5.300 Gain on sale of investments 916 Record entry Clear entry View general journal View transaction list Journal entry worksheet Ko @ @ O O O O 80 ) To record the accrual of interest earned on note receivable. Note: Enter debits before credits. Credit Date General Journal December 31, 2021 Bad debt expense Allowance for uncollectible accounts Debit 21,600 21,600 Record entry Clear entry View general journal View transaction list Journal entry worksheet
