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Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred:
Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $36,000 and accepted a 8%,7-month note. 8% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $27,600, and accepted a noninterest-bearing note for which $30,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $28,000 with terms 3/10,n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $4,600. Evergreen reduced the customer's receivable balance by $6,400, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $64,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Incorporated, note at the bank. The bank's discount rate is 10%. The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note amount plus interest to the bank. Journal entry worksheet Record accrued interest at December 31, 2024. Note: Enter debits before credits. \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Date } & \begin{tabular}{c} Income increase \\ (decrease) \end{tabular} \\ \hline February 28 & \\ \hline March 31 & \\ \hline April 3 & \\ \hline April 11 & \\ \hline April 17 & \\ \hline April 17 & \\ \hline April 30 & \\ \hline June 30 & \\ \hline June 30 & \\ \hline December 31 & \\ \hline \multicolumn{1}{|c|}{ Total effect } & \\ \hline \end{tabular}
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