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: Yeb. 28 Bold merchandise to lennox, Inc., for $30,000 and accepted a B4, 7-month note 81 is an appropriate rate for this type of note. Mar. 31 sold nerchandise to Maddox co. that had a fair value of $20,240, and accepted a noninterest-bearing note for which 622,000 payment in due on March 31, 2022. Ape: Bold merchandise to Cart Co. for $20,000 with terme 2/10, n/30. Evergreen uses the grous method to account for cash discounts 11 Collected the entire amount due from Carr Co. 17 customer returned merchandise coating $4,300. Evergreen reduced the customer's receivable balance by 56,100, the sale price of the merchandise. sales returns are recorded by the company as they occur. 30 Transferred receivables of $61,000 to a factor without recourse. The factor charged Evergreen a 1 Finance charge on the receivables transferred. The sale criteria are not June 30 counted the Lennox, Inc., note at the bank. The bank's discount rate la 101. The note van discounted without recourne Sep 30 Lennox, Inc. paid the note anount plus interest to the bank. Required: 1. Prepare the necessary Journal entries for Evetgreen 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 3 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. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar) View transaction list Journal entry worksheet Sold merchandise to Carr Co. for $20,000 with terms 2/10, 1/30. Evergreen uses the gross method to account for cash discounts. Note: Enter debits before credits Date April 03, 2021 General Journal Dobit Credit Record entry Clear entry View general Journal View transaction list Journal entry worksheet Transferred receivables of $61,000 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 Date April 30, 2021 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the accrual of four months of interest on the note receivable issued on February 28. Note: Enter debits before credits Date General Journal Dobit Credit June 30, 2021 Record entry Clear entry View general journal View transaction list Journal entry worksheet 2 3 4 5 6 7 8 og 10 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 10%. The note was discounted without recourse. Note: Enter debits before credits. General Journal Date June 30, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet
