Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2018, the following transactions related to receivables occurred Feb. 28 Sold merchandise to Lennox, Inc. for $20,000 and accepted a 12%, 7-month note. 12% is an appropriate rate for this type of Mar. 31 Sold merchandise to Maddox Co. and accepted a non interest-bearing note with a discount rate of 12%. The $10,000 payment is Apr. 3 Sold merchandise to Carr Co. for $8,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash note due on March 31, 2019 discounts. 11 Collected the entire amount due from Carr Co 17 A customer returned merchandise costing $3,900. Evergreen reduced the customer's receivable balance by $5,700, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $57,000 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 14%. The note was discounted without recourse Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank Journal entry worksheet 123 4 5 678 9 10 Sold merchandise to Lennox, Inc. for $20,000 and accepted a 12%, 7-month note, 12% is an appropriate rate for this type of note. Note: Enter debits before credits. Date General Journal Debit Credit February 28, 2018 Record entry Clear entry View general journal Journal entry worksheet K12 3 4 5 678 9 10 Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 12%. The $10,000 payment is due on March 31, 2019. Note: Enter debits before credits. Date General Journal Debit Credit March 31, 2018 Record entry Clear entry View general journal Journal entry worksheet K123 4 5 678 9 10 Sold merchandise to Carr Co. for $8,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts Note: Enter debits before credits. Date General Journal Debit Credit April 03, 2018 Record entry Clear entry View general journal Journal entry worksheet K123 4 5 678 9 10 Collected the entire amount due from Carr Co. Note: Enter debits before credits. Date General Journal Debit Credit April 11, 2018 Record entry Clear entry View general journal Journal entry worksheet 4 7 Evergreen reduced the customer's receivable balance by $5,700, the sales price of the merchandise. Sales returns are recorded by the company as they occur. Note: Enter debits before credits. Date General Journal Debit Credit April 17, 2018 Record entry Clear entry View general journal Journal entry worksheet 9 10 A customer returned merchandise costing $3,900. Note: Enter debits before credits Date General Journal Debit Credit April 17, 2018 Record entry Clear entry View general journal Journal entry worksheet K1234 5678 910 Transferred receivables of $57,000 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 General Journal Debit Credit April 30, 2018 Record entry Clear entry View general journal Journal entry worksheet 1234567181910 Accrued four months of interest on the note receivable issued on February 28. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2018 Record entry Clear entry View general journal K123 4 5 6789 10 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 14%. The note was discounted without recourse. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2018 Record entry Clear entry View general journal Journal entry worksheet K123 4 5 678 9 10 Lennox, Inc., paid the note amount plus interest to the bank. Note: Enter debits before credits. Date General Journal Debit Credit September 30, 2018 Record entry Clear entry View general journal Journal entry worksheet Record accrued interest at December 31, 2016. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Record entry Clear entry View general journal Prepare a schedule showing the effect of the journal entries on 2018 income before taxes. (Decreases should be indicated with a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Income Date increase (decrease) February 28 March 31 April 3 April 11 April 17 April 17 April 30 June 30 June 30 December 31 Total effect