Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31....

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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 receivables occurred: February 28 Sold merchandise to Lennox, Incorporated, for $10,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $7,520, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $5,500 with terms 3/10, 1/30 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 $3,700. Evergreen reduced the customer's receivable balance by $5,500, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $55,000 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 8%. The note was discounted without recourse. September 30 Lennox, Incorporated, 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 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. Answer is complete but not entirely correct. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 February 28, 2024 Notes receivable Sales revenue March 31, 2024 Notes receivable Sales revenue Discount on notes receivable 3 April 03, 2024 Accounts receivable Sales revenue 4 April 11, 2024 Cash Sales discounts Accounts receivable Debit Credit 10,000 10,000 8,000 7,520 480 5,500 5,500 5,335 165 5,500 5 April 17, 2024 Sales returns 5,500 Accounts receivable 5,500 6 April 17, 2024 Inventory 3,700 Cost of goods sold 3,700 7 April 30, 2024 Cash 53,900 Loss on sale of accounts receivable 1,100 Accounts receivable 55,000 8 June 30, 2024 Interest receivable Interest revenue 6 200 200 June 30, 2024 Cash Loss on sale of notes receivable 9,400 800 Interest receivable 200 Notes receivable 10,000 10 September 30, 20 No journal entry required Required 1 Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare any necessary adjusting entries at December 31, 2024. Adjusting entries are only recorded at year-end. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 December 31, 202 Discount on notes receivable Interest revenue < Required 1 Required 3 > Debit Credit 200 200 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign. Income increase Date (decrease) February 28 $ 10,000 March 31 (480) April 3 5,500 April 11 (165) April 17 (3,700) > April 17 (5,500) April 30 (800) June 30 200 June 30 (100) December 31 200 Total effect $ 5,155 < Required 2 Required 3 > 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 $10,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. March 31 Sold merchandise to Maddox Company that had a fair value of $7,520, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2025. April 3 Sold merchandise to Carr Company for $5,500 with terms 3/10, 1/30 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 $3,700. Evergreen reduced the customer's receivable balance by $5,500, the sales price of the merchandise. Sales returns are recorded by the company as they occur. April 30 Transferred receivables of $55,000 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 8%. The note was discounted without recourse. September 30 Lennox, Incorporated, 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 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. Answer is complete but not entirely correct. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 February 28, 2024 Notes receivable Sales revenue March 31, 2024 Notes receivable Sales revenue Discount on notes receivable 3 April 03, 2024 Accounts receivable Sales revenue 4 April 11, 2024 Cash Sales discounts Accounts receivable Debit Credit 10,000 10,000 8,000 7,520 480 5,500 5,500 5,335 165 5,500 5 April 17, 2024 Sales returns 5,500 Accounts receivable 5,500 6 April 17, 2024 Inventory 3,700 Cost of goods sold 3,700 7 April 30, 2024 Cash 53,900 Loss on sale of accounts receivable 1,100 Accounts receivable 55,000 8 June 30, 2024 Interest receivable Interest revenue 6 200 200 June 30, 2024 Cash Loss on sale of notes receivable 9,400 800 Interest receivable 200 Notes receivable 10,000 10 September 30, 20 No journal entry required Required 1 Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare any necessary adjusting entries at December 31, 2024. Adjusting entries are only recorded at year-end. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 December 31, 202 Discount on notes receivable Interest revenue < Required 1 Required 3 > Debit Credit 200 200 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule showing the effect of the journal entries on 2024 income before taxes. Note: Decreases should be indicated with a minus sign. Income increase Date (decrease) February 28 $ 10,000 March 31 (480) April 3 5,500 April 11 (165) April 17 (3,700) > April 17 (5,500) April 30 (800) June 30 200 June 30 (100) December 31 200 Total effect $ 5,155 < Required 2 Required 3 >

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1 Journal Entries February 28 Notes Receivable 10000 Sales Revenue 10000 March 31 N... View the full answer