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 $12,000 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 $9,000, and accepted a noninterest-bearing note for which $10,000 payment is due, on March 31, 2025. April 3 Sold merchandise to Carr Company for $7,000 with terms 3/10/30 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 $5,200. Evergreen reduced the customer's receivable balance by $7,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $70,000 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, Incorporated, note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. September 30 Lennox, Incorporated, 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, 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. 5 Mayt Journal entry worksheet < 2 3 4 5 6 7 8 9 10 > Sold merchandise to Lennox, Incorporated, for $12,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit 12,000 12,000 February 28, 2024 Notes receivable Sales revenue Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 9 10 > Sold merchandise to Maddox Company that had a fair value of $9,000, and accepted a noninterest-bearing note for which $10,000 payment is due on March 31, 2025. Record the transaction. Note: Enter debits before credits. Date March 31, 2024 General Journal Debit Credit Notes receivable 10,000 Discount on notes receivable Sales revenue 9,000 Record entry Clear entry View general journal Journal entry worksheet < 2 3 4 5 6 7 8 9 10 > Sold merchandise to Carr Company for $7,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit April 03, 2024 Accounts receivable 7,000 Sales revenue 7,000 Record entry Clear entry View general journal 3 8 points Skipped Journal entry worksheet < 2 3 4 5 6 7 8 9 10 > Collected the entire amount due from Carr Company. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit eBook Print Date April 11, 2024 Cash References Sales discounts Accounts receivable Record entry Clear entry View general journal Check my wo worksheet 3 5 6 7 8 9 10 bed ok t nces A customer returned merchandise costing $5,200. Evergreen reduced the customer's receivable balance by $7,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. Record the transaction. Note: Enter debits before credits. Date April 17, 2024 General Journal Debit Credit Record entry Clear entry View general journal ts Skipped eBook Print erences 2 3 7 8 9 A customer returned merchandise costing $5,200. Record the transaction. Note: Enter debits before credits. Date April 17, 2024 10 10 General Journal Debit Credit Record entry Clear entry View general journal O ints Skipped eBook Print References: Journal entry worksheet < 5 6 7 8 9 10 Transferred receivables of $70,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met. Record the transaction. Note: Enter debits before credits. Date April 30, 2024 General Journal Debit Credit Record entry Clear entry View general journal 00 8 3 points Skipped Journal entry worksheet 5 6 7 8 9 10 > Record the accrual of four months of interest on the note receivable issued on February 28. Record the transaction. Note: Enter debits before credits. eBook Print References Date June 30, 2024 General Journal Debit Credit Record entry Clear entry View general journal Check m 00 8 3 points Skipped eBook Print References Journal entry worksheet < 4 5 6 7 8 9 110 Discounted the Lennox, Incorporated, note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. Record the transaction. Note: Enter debits before credits. Date June 30, 2024 General Journal Debit Credit Record entry Clear entry View general journal Check my wor 00 8 3 points Skipped Journal entry worksheet 2 3 4 5 6 7 8 9 Lennox, Incorporated, paid the note amount plus interest to the bank. Record the transaction. eBook Print References Note: Enter debits before credits. Date September 30, 2024 General Journal Debit Credit View general journal Record entry Clear entry 3 Journal entry worksheet points Record accrued interest at December 31, 2024. Skipped eBook Note: Enter debits before credits. Print References Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign. 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 < Required 2 Required 3>