Reference no: EM131751271

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 2016:

Mar. 17  Accounts receivable of $2,300 were written 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 interest at 5% to be paid on March 30, 2017.

May 30 Discounted the $30,000 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 $18,000. 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 $5,600 and accepted a $6,600 non interest-bearing note with a discount rate of 6%. The $6,600 payment is due on February 28, 2017. The stock has no ready market value.

Dec. 31  Bad debt expense is estimated to be 2% of credit sales for the year. Credit sales for 2016 were $760,000.

Required:

1. Prepare journal entries for each of the above transactions. (Do not round your intermediate calculations. Round your final answers to the nearest whole