Evergreen Company sells lawn and garden products and had various receivables transactions throughout 2024. These included selling merchandise on account, collecting and discounting customer notes, returning merchandise, factoring receivables, and discounting a customer note at the bank. Journal entries were required to record these transactions, and an adjusting entry was needed at year-end to account for uncollected receivables and interest income.

1. 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 receivables occurred:
February 28 Sold merchandise to Lennox, Incorporated, for $18,90 and accepted a 8%, 7-month
note. 8% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox
Company that had a fair value of $11,960, and accepted a noninterest-bearing note for which
$13,60e payment is due on March 31,2025. April 3 Sold merchandise to Carr Company for $11,e
with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. April 11
Collected the entire amount due from Carr Company April 17 A customer returned merchandise
costing $4,90e. Evergreen reduced the customer's receivable balance by $6, 70e, the sales price
of the merchandise. Sales returns are recorded by the company as they occur. April 30
Transferred receivables of $67,60e to a factor without recourse. The factor charged Evergreen a
2% 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 1e%. The note was
discounted without recourse. September 30 Lennox, Incorporated, paid the note amount plus
interest to the bank. Requlred: 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, 2024. Adjusting
entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal
entries on 2024 income before taxes. Complete this question by entering your answers in the tabs
below. 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. Note:
If no entry is required for a transaction/event, select "No journal entry required" in the first
account field. Journal entry worksheet Sold merchandise to Lennox, Incorporated, for $18,000
and accepted a 8%,7 month note. 8% is an appropriate rate for this type of note. Record the
transaction. Note: Enter debits before credits.