Prepare General Journal Entries for the Following Transactions of This

question 7

Essay

Prepare general journal entries for the following transactions of this company for the current year:
$\begin{array}{|l|l|}\hline\text { Apr. 25 } & \begin{array}{l}\text { Sold } \$ 4,500 \text { of merchandise to CBC Corp, receiving a 10\%,60-day, \$4,500 note } \\\text { receivable. }\end{array} \\\hline \text { June 24 } & \text { The note of CBC Corp., received on April 25 was dishonored. }\\\hline\end{array}$

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Definitions:

Inventory Account

An account in the financial statements that represents the value of goods a company has in stock, either finished goods, work in progress, or raw materials.

Operating Activities

Transactions and events that relate to the main activities of a company, typically including cash inflows and outflows from sales and expenses.

Net Cash Provided

The net amount of cash generated by an organization's operating, investing, and financing activities within a specific period.

Cash Account

An account reflecting the amount of cash a company holds, including physical currency and money in bank accounts.