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 $24,000 and accepted a 8%, 7-month note. 8% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $16,560, and accepted a noninterest-bearing note for which $18,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $12, 000 with terms 2/10, 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, 100. Evergreen reduced the customer's receivable balance by $5,900, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $59,000 to a factor without recourse. The factor charged Evergreen a 1% 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 10%. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 February 28, 2021 Notes receivable 24,000 Sales revenue 24,000 2 March 31, 2021 Notes receivable 18,000 Discount on notes receivable 1,440 Sales revenue 16,560 3 April 03, 2021 Accounts receivable 12,000 Sales revenue 12,000 4 April 11, 2021 Cash 11,760 Sales discounts 240 Accounts receivable 12,000 5 April 17, 2021 Sales returns 5,900 Accounts receivable 5,900 6 April 17, 2021 Inventory 4,100 Cost of goods sold 4,100 7 April 30, 2021 Cash 58,410 Loss on sale of notes receivable x 690 Accounts receivable 59,000 8 June 30, 2021 Interest receivable 640 Interest revenue 640 9 June 30, 2021 Cash 24,492 Loss on sale of notes receivable 148 Interest receivable 640 Notes receivable 24,000 10 September 30, 20: No journal entry requiredEvergreen Company sells lawn and garden products to wholesalers. The company's scal yearend is December 31. During 2021, the following transactions related to receivables occurred: Feb. 20 Sold merchandise to Lennox. Inc., for $24,000 and accepted a 0%, Tmonth note. 0% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Do. that had a fair value of $15,550, and accepted a noninterest-bearins note for which $10,000 payment is due on March 31. 2022. Apr. 3 Sold merchandise to Carr Co. for $12,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 0o||ected the entire amount due from 0arr 0o. 7 A customer returned merchandise costing $4,100. Evergreen reduced the customer\" s receivable balance by $5,900, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor charsed Eversreen a 1% finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox. |nc.. note at the bank. The bank' 5 discount rate is 10%. The note was discounted without recourse. Sep. 30 Lennox, |nc., paid the note amount plus interest to the bank. Required: 1. Prepare the necessaryjournal 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 yearend. 3. Prepare a schedule showing the effect of thejournal entries on 2021 income before taxes. 6 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare anyr necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end. (If no entry is required for a transactionlevent, select "No journal entry required" in the rst account eld.) Interest revenue 1 440 9 0 Answer is complete but not entirely correct. lI'Jomplete 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 nal answers to the nearest whole dollar.) February 23 March 31 16,55D 0 April 3 12,000 0 April 11 (2401.0 (5,900} o December 31 Total effect