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Evergreen Company selis lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to receivables occurred:

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Evergreen Company selis 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 $12,000 and accepted a 8%,7-month note. 83 is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $7,452, and accepted a noninterest-bearing note for which $8,100 payment is due on March 31,2025 . April 3 Sold merchandise to Carr Conpany for $7,100 with terns 3/10,n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire amount due fron Carr Conpany April 17 A customer returned merchandise costing $3,300. Evergreen reduced the custoner's receivable balance by $5,100, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $51,000 to a factor without recourse. The factor charged Evergreen a 24 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 104. The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note anount 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. 2. Prepare any necessary adjusting entries at December 31, 2024. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Complete this question by entering your answers in the tabs below

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