Question
1. On October 1, BSS placed an order for 100 golf shirts at a unit cost of $21, under terms 2/10, n/30. Record the place
1. | On October 1, BSS placed an order for 100 golf shirts at a unit cost of $21, under terms 2/10, n/30. Record the place of the order for golf shirts. |
2. | The order placed on October 1 was received by BSS on October 10, but 10 golf shirts had been damaged in shipment. Record the inventory purchased on account. |
3. | On October 11, the 10 damaged golf shirts were returned. Record the return of the damaged inventory. |
4. | On October 12, BSS complained that the remaining golf shirts were slightly defective so the supplier grated a $290 allowance. Record the allowance received for the defective inventory purchased. |
5. | On October 13, BSS paid for the golf shirts. Record the payment in full. |
6. | During the first week of October BSS received student and faculty orders for 90 golf shirts, at a unit price of $39.00, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18. Record the sales revenue on account for the order. |
7. | During the first week of October BSS received student and faculty orders for 90 golf shirts, at a unit price of $39.00, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18. Record the cost of goods sold for the order. |
8. | Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the return of the unsatisfactory merchandise sold on account. |
9. | Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the cost of goods returned. |
10. | Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $9.00 per shirt. On October 22, the remaining 45 customers were granted the allowance. Record the allowance granted for the defective inventory sold on account. |
11. | On October 25, the customers paid their remaining balances due on account. Record the customers' payments in full. |
12. | As of October 31, the payment of inventory ordered in full dated October 13 had not yet cleared the bank. Record the Otober 13 check that had not yet cleared the bank. |
value: 1.33 points
Required information
C6-1 Part 1
Required: | |
1b. | Prepare journal entries for the transactions described above, using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1a. |
Report the financial effects of the above transactions in a multistep income statement for the month ended October 31 prepared for internal use. Assume operating expenses, other than cost of goods sold, are $100 and income tax expense is $135. | |
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