Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31 . During 2024 , the ollowing transactions related to receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $20,000 and accepted a 12%,7-month note. 12% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $15,840, and accepted a noninterest-bearing note for which $18,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $17,000 with terms 4/10,n/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 merchandise costing $4,700. Evergreen reduced the customer's receivable balance by $6,500, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $65,000 to a factor without recourse. The factor charged Evergreen a 3% finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Incorporated, note at the bank. The bank's discount rate is 14%. The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note amount plus interest to the bank. Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign