note 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 $24,000 and accepted - 20%, 7 month note 10% is an appropriate rate for this type of Mar. 31 Sold merchandise to addox Co. that had a fair value of $18,900, and accepted a noninterest-bearing note for which $21,000 payment is due on March 31, 2022 Apr 3 Sold merchandise to Carr Co. for $16,000 with teres 2/10, 1/30. Evergreen uses the gross method to account for cash discounts 11 Collected the entire amount due from Care Co. 17 A customer returned merchandise costing $5,000. Evergreen reduced the customer's receivable balance by $6,388, the sales price of the marchandise Sales returns are recorded by the company as they occur. 30 Transferred receivables of $68,000 to a factor without recourse. The factor charged Evergreen a 1x finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennon, Inc., note at the bank. The bank's discount rate is 12%. The note was discounted without recourse Sep. 99 Lennox, Int. paid the note sunt plus interest to the bank. Required: 1. Prepare the necessary Journal entiles 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 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. (Il no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not found intermediate calculations. Round your final answers to the nearest whole dollar) Required 1 Required 2 Required 3 Prepare the necessary fournal 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. (If 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 Lennox, Inc. for $24,000 and accepted a 10%, 7 month note, 10% is an appropriate rate for this type of note. Note: Enter debits before credits General Journal Date February 28, 2021 Debit Credit Racondente Clearnt View.penerational Required 1 Required Required 3 Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end. (If no entry is for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
