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 $3,600 were written off as uncollectible. The company uses the allowance method. 38 Loaned an officer of the company $42,000 and received a note requiring principal and interest at 5% to be paid on March 30, 2022. May 30 Discounted the $42,eee note at a local bank. The bank's discount rate is 6%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $31,eee. 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 $6,900 and accepted a $7,900 noninterest-bearing note with a discount rate of 6%. The $7,900 payment is due on February 28, 2022. The stock has no ready market value. Dec. 31 Meldon 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 59se,eee. The allowance had a balance of $31,000 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 4 calculations and round your final answers to nearest whole dollar)
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 $3,600 were written off as uncollectible. The company uses the allowance method. 38 Loaned an officer of the company $42,000 and received a note requiring principal and interest at 5% to be paid on March 30, 2022. May 30 Discounted the $42,eee note at a local bank. The bank's discount rate is 6%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $31,eee. 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 $6,900 and accepted a $7,900 noninterest-bearing note with a discount rate of 6%. The $7,900 payment is due on February 28, 2022. The stock has no ready market value. Dec. 31 Meldon 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 59se,eee. The allowance had a balance of $31,000 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 4 calculations and round your final answers to nearest whole dollar)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $3,600 were written off as uncollectible. The company uses the allowance method.
38 Loaned an officer of the company $42,009 and received a note requiring principal and interest at 5% to be paid on March
30, 2022.
Hay 30 Discounted the $42,eee note at a local bank. The bank's discount rate is 6%. The note was discounted without recourse
and the sale criteria are met.
June 30 Sold merchandise to the Blankenship Company for $31,8ea. 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 $6,900 and accepted a $7,900 noninterest-bearing note with a
discount rate of 6%. The $7,980 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 $988,000. The allowance had a balance of $31,088 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
La
calculations and round your final answers to nearest whole dollar)
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