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Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2024, the following transactions related to recelvables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $20,000 and accepted a 124,7 -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 $8,890, and accepted a noninterest-bearing note for which $10,000 payment is due on March 31, 2025. April 3 sold merchandise to Carr Company for $8,000 with terms 2/10,n/30. Evergreen uses the gross method to account for cash discounts. April 11 Collected the entire anount due fron Carr Cospany Aprit 17 A custoner returned merchandise costing $3,98. Evergreen reduced the custoner's receivable batance by $5,70, the sates price of the nerchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $7, eee to a factor without recourse. The factor charged Evergreen a 14 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 14v. The note was discounted without recourse. September 30 Lennox, Incorporated, paid the note anount plus interest to the bank. Required: 1. Prepare the necessary journal entries for Evorgreen 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 31,2024 . Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2924 income before taxes. Journal entry worksheet 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. Record the transaction. Note: Enter debits before credits. Journal entry worksheet Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign

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