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. 25 Sold merchandise to Lennox, Inc., for $20,000 and accepted a 68, 7-month note. 6X is an appropriate rate for this type of note. Mar. 11 sold merchandise to Maddox Co. that had a fair value of $15,040, and accepted a non interest-bearing note for which $16,600 Apr. 3 Sold merchandise to Care Co. for $14,000 with terms 2/10, 1/3. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Care Co. 17 A customer returned merchandise costing 54,800 Evergreen reduced the customer's receivable balance by 56,600, the sales price of the merchandise. Sales returns are recorded by the company as they occur 30 Transferred receivables of $66,000 to a factor without recourse. The factor charged Evergreen W 1% Pinance charge on the receivables transferred. The sale criteria are met. June Jo Discounted the Lennon, Inc. note at the bank. The band's discount rate $ %. The note was discounted without recourse. Sep 30 , Inc.the note plus to the 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. 1 2. 3 4 5 6 7 8 9 10 > Sold merchandise to Lennox, Inc. for $20,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. Note: Enter debits before credit Date February 20, 2021 General Journal Dibit Credit Record entry Clear entry View general journal Collected the entire amount due from Carr Co. Note: Enter debits before credits General Journal Date April 11, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet A customer returned merchandise costing $4,800. Note: Enter debits before credits. General Journal Debit Credit Date April 17 2021 Record entry Clear entry View general Journal Transferred receivables of $66,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met. Note: Enter debits before credits. General Journal Debit Credit Date April 30, 2021 Record the accrual of four months of interest on the note receivable issued on February 28. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Record entry Clear entry View general Journal 1 2 3 4 5 6 7 8 10 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 8%. The note was discounted without recourse. Note: Enter debits before credits. General Journal Debit Credit Date June 30 2021