Question

Submit 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 1.900 were written of an uncollectible. The company uses the allowance method. JO Loaned an officer of the company 921,000 and received a note requiring principal and interest at 78 to be paid on March 30, 2022. May Jo Discounted the $21,000 note at a local bank. The bank's discount rate is 88. The note was discounted without recourse and the sale criteria are met. June 30 Bold merchandise to the Blankennhip Company for $14,000. Terms of the sale are 2/10, /30. Weldon uses the gross method to account for cash discounts July 8 The Blankenship Company paid ita account in full. Aug. 31 Sold stock in a nonpublie company with a book value of $5,200 and accepted a $6,300 noninterest-bearing note with a discount rate of 88. The $6,300 payment is due on February 20, 2022. The stock has no ready market value. Dec. 31 Weldon estimates that the allowance for uncollectible accounts ahould have a balance in it at year-end equal to 28 of the gross accounts receivable balance of 5810,000. The allowance had a balance of $14,000 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 1

Weldon Corporation- Discounted -Without recourse
Date	Genral Journal	Debit	Credit
17-Mar	Allowance For Uncollectible Accounts	$1,900.00
	Accounts Receivable		$1,900.00
30-Mar	7% Note Receivable	$21,000.00
	Cash		$21,000.00
30-May	Interest Receivable	$245.00
	Interest Revenue (21,000 X 7% X 2/12)		$245.00
	Cash (21000*107%)-(21000*107%)*8%*10/12	$20,972.00
	Loss On Sale Of Notes Receivable (BF)	$273.00
	Note Receivable		$21,000.00
	Interest Receivable		$245.00
30-Jun	Accounts Receivable	$14,000.00
	Sales Revenue		$14,000.00
8-Jul	Cash (14,000 X 98%)	$13,720.00
	Sales Discounts (14,000 X 2%)	$280.00
	Accounts Receivable		$14,000.00
31-Aug	Notes Receivable	$6,300.00
	Discount On Note Receivable (BF)		$242.00
	Investments		$5,200.00
	Gain On Sale Of Investments (6300XPVif@4%) or ((6300*0.961538)-5200)		$858.00
	Pv(Fv=6,000, Pmt=0, N=6/12, I=8%) = 7,547
Dec. 31	Bad Debt Expense ($810,000 X 2%)	$16,200.00
	Allowance For Uncollectible Accounts		$16,200.00