Weldon Corporaton\'s fiscal year ends December 31. The following is a ist f fans

Question

Weldon Corporaton's fiscal year ends December 31. The following is a ist f fansactions invoking receivables that occurred during 2016 Mar. 17 Accounts receivable of S2.300 were witten off as uncollectible. The company uses the allowance method 30 Loaned an officer of the company $30,000 and received a note requiring principal and inerest at May 30 Discounted the S30.000 note at a local bank. The bank's discount rate is 6%. The note was 5% to be paid on March 30, 2017 discounted without recourse and the sale criteria are met June Sold merchandise to the Blankenship Company for $18,000 Terms of the sale are 210, /30. 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 $5,600 and accepted a $6,600 non Dec. 31 Bad debt expense is estimated to be 2% of credit sales for the year Credit sales for 2016 were Required: interest-bearing note with a discount rate of 6% 2017. The stock has no ready market value The $6,600 payment is due on February 28, $760,000 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.) 1. 3 Answer is complete but not entirely correct. General Journal Debit Credit No Date O 2.300 March 17 2016 Allowance for uncollectible accounts 2.300 C Accounts receivable 30,000 March 30,N 2016 Note receivable

Explanation / Answer

1) Calculation for May 30's Entry :-

Journal Entry :-

2) Entry for Accrued Interest Earned on Note Receivable :-

Particulars Amount($) Face Value 30000 Add : Interest to Maturity ($30000*5%) 1500 Maturity Value 31500 Less : Discount ($31500*6%*(10/12)) (1575) Cash Proceeds 29925

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