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 $30,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $23,500, and accepted a noninterest-bearing note for which $25,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $22,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $4,200. Evergreen reduced the customer's receivable balance by $6,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $60,000 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, Inc., note at the bank. The bank's discount rate is 8%. The note was discounted without recourse. Sep. 30 Lennox, Inc., paid the note amount 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, 2021. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes. Sales revenue Discount on notes receivable 23,500 1,500 3 April 03, 2021 22,000 Accounts receivable Sales revenue 22,000 4 April 11, 2021 Cash Sales discounts Accounts receivable 21,340 660 22,000 5 April 17, 2021 6,000 Sales returns Accounts receivable 6,000 6 April 17, 2021 4,200 Inventory Cost of goods sold 4,200 7 April 30, 2021 Cash Loss on sale of accounts receivable Accounts receivable 58,800 1,200 60,000 8 00 June 30, 2021 600 Interest receivable Interest revenue 600 > 9 June 30, 2021 29,700 900 Cash Loss on sale of notes receivable Interest receivable Notes receivable >> 600 30,000 10 September 30, 20. No journal entry required Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date Debit Credit 1 General Journal December 31, 202 Discount on notes receivable Interest revenue 1,500 1,500 Return to question 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, 2021. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule showing the effect of the journal entries on 2021 income before taxes. (Decreases should be indicated with a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Income increase (decrease) Date February 28 March 31 April 3 April 11 April 17 April 17 April 30 June 30 June 30 December 31 Total effect 0