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: Yebruary 28 sold merchandise to Lennox, Incorporated, for $40,000 and accepted a 128, 7-month note. 128 is an appropriate rate for thin type of note. March 31 sold merchandise to Maddox Company that had a fair value-of $24,640, and accepted a noninterest-bearing note for which $28,000 payment is due on March 31,2025. April 3 sold merohandise to Care Conpany for $20,000 with terni 2/10,1/10. Evergreen uses the grosa method to account for cash discounts. April 11 Collected the entire anount due from Carr Conpany April it A fustomer returned merchandise costing $3,800, Evergreen reduced the eustoner's receivable balance by $5,600, the sales price of the nerchandise. Sales roturns are recorded by the company as they occur. April 30 Transferred receivabies of $56,000 to a factor without recourse. The factor charged Evergreen a 14 finance charge on the recelvablen transferred. The sale eriteria are net. June 30 Discounted the Lensox, Incorporated, note at the bank. The bank's dincount rate is 142 . The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note anount 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, 2024. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. 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: Pebruary 28 Sold merchandise to Lennox, Incorporated, for $40,000 and accepted a 128,7 -month note. 128 is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $24,640, and accepted a noninterest-bearing note for which $28,000 paynent is due on March 31,2025. April 3 Sold merchandise to Carr Company for $20,000 with terms 2/10,7/30. 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 nerchandise costing $3,800. Evergreen reduced the customer's receivable balance by $5,600, the sales price of the merchandise. Salon returns are recorded by tho company as they occur. April 30 Transferred receivables of $56,000 to a factor without recourse. The factor charged Evergreen a 18 finance charge on the receivables transferred. The sale criteria are net. June 30 Discounted the Lonnox, Incorporated, note at the bank. The bank's discount rate is 148 . The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note anount plun 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, 2024. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Complete this question by entering your answers in the tabs below. 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. Note: If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Prepare any necessary adjusting entries at December 31,2024 . Adjusting entries are only recorded at year-end. Notet If no entry is required for a transaction/event, select "No journal entry required" in the first accovint field. Journal entry worksheet Record accrued interest at December 31,2024. Note: Caser debers before credits Complete this question by entering your answers in the tabs below. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign
