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 receivabies occurred: Feb. 28 Sold merchandise to Lennox, Inc. for $12,000 and accepted a 88, 7-month note Mar. 31 sold merchandise to Maddox Co. and accepted anoninterest-bearing note with a Apr. 3 Sold merchandise to Carr Co. for $7,100 with terns 3/10, n/30. Evergreen uses 88 is an appropriate rate for this type of note discount rate of 88. The $8,100 payment is due on March 31, 2019 the gross method to account for cash discounts. 11 Collected the entire amount due fron Carr Co 17 A customer returned merchandise costing $3,300. Evergreen reduced the customer's receivable balance by $5,100, the sales price of the merchandise. Sales returns are recorded by the company as they occur 30 Transferred receivables of $51,000 to a factor without recourse. The factor charged Evergreen a 2 finance charge on the receivables tranaferred. The sale criteria are net June 30 Discounted the Lennox, Inc, note at the bank. The bank's discount rate is 10. The note was discounted without recourse Sep- 30 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 invoiving 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