1) Sold merchandise to Lennox, Inc. for $18,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of note.

2) Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 8%. The $13,000 payment is due on March 31, 2019.

3) Sold merchandise to Carr Co. for $11,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts.

4) Collected the entire amount due from Carr Co.

5) Evergreen reduced the customers receivable balance by $6,700, the sales price of the merchandise. Sales returns are recorded by the company as they occur.

6) A customer returned merchandise costing $4,900.

7) Transferred receivables of $67,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met.

8) Accrued four months of interest on the note receivable issued on February 28.

9) Discounted the Lennox, Inc., note at the bank. The banks discount rate is 10%. The note was discounted without recourse.

10) Lennox, Inc., paid the note amount plus interest to the bank.

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred Feb. 28 Sold merchandise to Lennox, Inc. for $18,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of Mar. 31 Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 8%. The $13,000 payment is Apr. 3 Sold merchandise to Carr Co. for $11,0e0 with terms 3/10, n/3e. Evergreen uses the gross method to account for cash note. due on March 31, 2019 discounts 11 Collected the entire amount due from Carr Co 17 A customer returned merchandise costing $4,90. Evergreen reduced the customer's receivable balance by $6,700, the sales 3e Transferred receivables of $67,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the price of the merchandise. Sales returns are recorded by the company as they occur. receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 10%. The note was discounted without recourse Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. Required 1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise ignore the entry for the cost of goods sold Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred Feb. 28 Sold merchandise to Lennox, Inc. for $18,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of Mar. 31 Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 8%. The $13,000 payment is Apr. 3 Sold merchandise to Carr Co. for $11,0e0 with terms 3/10, n/3e. Evergreen uses the gross method to account for cash note. due on March 31, 2019 discounts 11 Collected the entire amount due from Carr Co 17 A customer returned merchandise costing $4,90. Evergreen reduced the customer's receivable balance by $6,700, the sales 3e Transferred receivables of $67,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the price of the merchandise. Sales returns are recorded by the company as they occur. receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 10%. The note was discounted without recourse Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. Required 1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise ignore the entry for the cost of goods sold