Question

Exercise 7-24 Receivables; transaction analysis [LO7-3, 7-5, 7-6, 7-7, 7-8] Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2018 Mar. 17 Accounts receivable of $3,000 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 March 30, 2019 May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 9%. The note was discounted without June 30 Sold merchandise to the Blankenship Company for $25,000. Terms of the sale are 2/10, n/30. Weldon uses the July 8 The Blankenship Company paid its account in full aid on recourse and the sale criteria are met gross method to account for cash discounts. Aug. 31 Sold stock in a nonpublic company with a book value of $6,300 and accepted a $8,000 noninterest-bearing note with a discount rate of 9%. The $8,000 payment is due on February 28, 2019 . The stock has no ready market value. Dec. 31 Bad debt expense is estimated to be 3% of credit sales for the year. credit sales for 2018 were $830,000. Required 1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated. (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.) Answer is complete but not entirely correct Date General Journal Debit Credit March 17 2018 Allowance for uncollectible accounts 3,000 Accounts receivable 3,000 March 30 2018 33,000 2 Note receivable Cash 33,000 May 30, 2018 Interest receivable 495 Interest revenue 495

Answer 1

3o00 ar I1 Alloce uncolleclible accounts 3o00 Accounts ecetvable 33000 MaY3Nole Yeceivable 33000 Cash Co O u o A 237 Cash 332, ч Loss an sale e iabb CdiPPe,

づune 30 Acco unts xecaivable. 2sboo So o Noles ecavabla 330 3oo aunoA De c 31 2u9o0 Discount on note rece;v.ble 23o