Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $36,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. I've got the journal entry for the Feb. 28 transaction and the interest accrual on June 30 correct as seen below, but I cannot figure out the numbers needed as the debits for "Cash" and "Loss on Notes Receivable" on the transaction when the note is discounted to the bank. Date General Journal Debit Credit 28-Feb-21 Notes Receivable 36000 Sales Revenue 36000 30-Jun-21 Interest Receivable 1200 Interest Revenue 1200 30-Jun-21 Cash Loss on Notes Receivable Notes Receivable Interest Receivable 36000 1200 Please show me how to arrive at the necessary amounts.

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $36,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. I've got the journal entry for the Feb. 28 transaction and the interest accrual on June 30 correct as seen below, but I cannot figure out the numbers needed as the debits for "Cash" and "Loss on Notes Receivable" on the transaction when the note is discounted to the bank. Date General Journal Debit Credit 28-Feb-21 Notes Receivable 36000 Sales Revenue 36000 30-Jun-21 Interest Receivable 1200 Interest Revenue 1200 30-Jun-21 Cash Loss on Notes Receivable Notes Receivable Interest Receivable 36000 1200 Please show me how to arrive at the necessary amounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer the question correctly. Thank you.
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