Gamez, Eileen Week 3 Assignment

Gamez, Eileen Week 3 Assignment - P7-10Evergreen Company...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: P7-10Evergreen Company sells lawn and garden products to wholesalers. The companys fiscal year-end is December 31. During 2011, the following transactions related to receivables occurred:Feb. 28 Sold merchandise to Lennox, Inc. for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.Mar. 31 Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 10%. The $8,000 payment is due on March 31, 2012.Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts.11Collected the entire amount due from Carr Co. 17A customer returned merchandise costing $3,200. Evergreen reduced the customers receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur.30Transferred receivables of $50,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met.June 30Discounted the Lennox, Inc., note at the bank. The banks discount rate is 12%. The note was discounted without recourse....
View Full Document

Page1 / 4

Gamez, Eileen Week 3 Assignment - P7-10Evergreen Company...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online