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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

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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 $12,eee and accepted a 8%, 7-month note. 8x is an appropriate rate for this type of note Mac. 31 Sold merchandise to Maddox Co. that had a fair value of $7,636, and accepted a noninterest-bearing note for which 58,380 payment is due on March 31, 2022 Apr Sold merchandise to Carr Co. for $7,300 with terms 3/10, 1/30. 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 53,500. Evergreen reduced the customers receivable balance by $5,3ee, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30. Transferred receivables of $53,000 to a factor without recourse. The factor charged Evergreen 3 26 finance charge on the receivables transferred. The sale criteria are met. June 3e Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 106. The note was discounted without recourse. Sep. Be 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 yearend. 3. Prepare a schedule showing the effect of the journal entries on 2021 Ircome before taxes Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Prepare a schedule showing the effect of the Journal entries on 2021 Income before taxes. Decreases should be indicated minus sign. Do not round Intermediate calculations. Pound your final answers to the nearest whole do Income Date Increase (decease) Fab More ADE

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