r07 Problems 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 $10,000 and accepted a 10%, 7-month note. lex is an appropriate rate for this type of Mar. 31 Sold merchandise to Maddox Co. and accepted a noninterest-bearing note with a discount rate of 10%. The $8,099 payment is Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/1e, n/se. Evergreen uses the gross me thod to account for cash note due on March 31, 2019. discounts 11 collected the entire amount due from Carr Co 17 A customer returned merchandise costing $3,200. Evergreen reduced the custoner's receivable balance by $5,ee0, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 38 Transferred receivables of $50,000 to a factor without recourse. The factor charged Evergreen a 1x 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 12%. The note was discounted without recourse. Sep. 38 Lennox, Inc., paid the note anount plus interest to the bank. nces 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. 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. (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