Prepare General Journal Entries for the Following Transactions of Laurier

question 16

Essay

Prepare general journal entries for the following transactions of Laurier Company, who use the perpetual inventory system:
$\begin{array}{|l|l|l|}\hline\text { Apr. } & 1& \begin{array}{l}\text { Sold } \$ 12,500 \text { of merchandise (Cost } \$ 10,500) \text { to flight Co., receiving a } \\10 \%, 120 \text {-day note. }\end{array} \\\hline\\\hline & 15& \begin{array}{l} \text { Wrote off } \$ 2,000 \text { owed by FCB Co. as worthless. (The allowance method } \\\text { of accounting for bad debts is used.) }\end{array} \\\hline& 30 & \begin{array}{l}\text { Received a } \$ 10,800,10 \%, 30 \text {-day note receivable from Cruise Co. as an } \\\text { extension of credit. }\end{array} \\\hline\\\hline \text { May }&1 & \text { Issued a } \$ 7,000,9 \%, 60 \text { day note to Auggie Co. for cash. } \\\hline &30 & \text { Note received on April } 30 \text { was collected. } \\\hline\\\hline \text { June } & 30 &\text { Auggie Co. honoured May } 1 \text { st note. } \\\hline & 30& \text { Accrued interest on outstanding notes. } \\\hline & \\\hline \text { July } &15 & \begin{array}{c}\text { FCB Co. paid } \$ 1,000 \text { of the amount written off on April } 15 \text { above. } \\\text { Laurier doesnot expect to receive any further payments. }\end{array} \\\hline\end{array}$

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Definitions:

Details

Specific or minor pieces of information that collectively form a comprehensive picture of a situation, object, or plan.

Generic Competitive Strategies

Framework described by Michael Porter that outlines three potential strategies for achieving competitive advantage: cost leadership, differentiation, and focus.

Competitive Environment

The dynamic external system in which businesses compete with each other for customers, resources, and market share.

Competitive Strategy

A long-term plan developed by a company to gain a competitive advantage over its rivals in the industry.