Question 10-Ch 7 Un x Elizabeth Miller Resun X P https://www.perdisco X Documents | Handsha x M Inbox (9)-wizmiller tion.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghn Our Office Saved H Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During Following transactions related to receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $24,000 and accepted a 10%, 7-month note. 10% is an appropriate this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $18,900, and accepted a noninterest-bearing note $21,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $16,000 with terms 2/10, n/e. Evergreen uses the gross method to accoun- cash discounts. April 11 Collected the entire amount due from Carr Company April 17 A customer returned merchandise costing $5,000. Evergreen reduced the customer's receivable balance by $6,800, sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $68,000 to a factor without recourse. The factor charged Evergreen a 1% finance cham the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Incorporated, note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note amount plus interest to the bank.