Problem 7-10 Miscellaneous receivable transactions [LO7-3, 7-4, 7-7, 7-8] 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 s6,000 and accepted a 8, 7-month note. 8 Mar. 31 sold Apr. 3 Sold merchandise to Carr co. for $4,000 with terms 2/10, n/30. Evergreen uses the is an appropriate rate for this type of note merchandise to Maddox co. and accepted a noninterest-bearing note with a discount rate of 8t. The $4,400 payment is due on March 31, 2019. gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,600. Evergreen reduced the customer's receivable balance by $5,400, the sales price of the merchandise. Sales returns are recorded by the company as they occur. Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met. was discounted without recourse. 30 Transferred receivables of $54,000 to a factor without recourse. The factor charged June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 10. The note sep. 30 Lennox, Inc, 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, 2018. Adjusting entries are only recorded at year- end. 3. Prepare a schedule showing the effect of the journal entries on 2018 income before taxes Complete this question by entering your answers in the tabs below Required1 Required 2 Required 3 Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale ignore the entry for the cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry re account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 5 6 9 10