Evergreen Company sells 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 $36,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.
March 31	Sold merchandise to Maddox Company that had a fair value of $25,200, and accepted a noninterest-bearing note for which $28,000 payment is due on March 31, 2025.
April 3	Sold merchandise to Carr Company for $20,000 with terms 410/410 , n3030 . Evergreen uses the gross method to account for cash discounts.
April 11	Collected the entire amount due from Carr Company
April 17	A customer returned merchandise costing $4,000. Evergreen reduced the customers receivable balance by $5,800, the sales price of the merchandise. Sales returns are recorded by the company as they occur.
April 30	Transferred receivables of $58,000 to a factor without recourse. The factor charged Evergreen a 3% finance charge on the receivables transferred. The sale criteria are met.
June 30	Discounted the Lennox, Incorporated, note at the bank. The banks discount rate is 12%. The note was discounted without recourse.
September 30	Lennox, Incorporated, paid the note amount plus interest to the bank.

Required:

Journal entry worksheet Record accrued interest at December 31, 2024. Note: Enter debits before credits. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign