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: 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 $\frac{4}{10},\frac{n}{30}.$ 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 $$4,000.$ Evergreen reduced the customer's receivable balance by $$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 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:

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.

Prepare any necessary adjusting entries at December $31,2024.$ Adjusting entries are only recorded at year$-$end.

Prepare a schedule showing the effect of the journal entries on $2024$ income before taxes. 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. Record the transaction.

Note: Enter debits before credits. Record the accrual of four months of interest on the note receivable issued on

February $28.$ Record the transaction.

Note: Enter debits before credits. 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.Lennox, Incorporated, paid the note amount plus interest to the bank. Record

the transaction.

Note: Enter debits before credits.

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 $410/$

$,$ n$30/$

$.$ 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 $$4,000.$ Evergreen reduced the customer$$s 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 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:

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.

Prepare any necessary adjusting entries at December $31,2024.$ Adjusting entries are only recorded at year$-$end.

Prepare a schedule showing the effect of the journal entries on $2024$ income before taxes.