Question
1. On October 1, BSS placed an order for 230 golf shirts at a unit cost of $26, under terms 2/10, n/30. Record the place
1. On October 1, BSS placed an order for 230 golf shirts at a unit cost of $26, 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 20 golf shirts had been damaged in shipment. Record the inventory purchased on account. 3. On October 11, the 20 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 $260 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 210 golf shirts, at a unit price of $44.00, 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 210 golf shirts, at a unit price of $44.00, 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 $14.00 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 $14.00 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 $14.00 per shirt. On October 22, the remaining 105 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.
1. Prepare journal entries for the transactions described above, using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts.
b.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 $120 and income tax expense is $130
c. Determine the percentage of net sales that is available to cover operating expenses other than cost of goods sold.
d.As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation?
e.Give the journal entry, if any needed as a result of including the item discussed in requirement 4-a in the bank-Record the check dated October 13 had not cleared the bank.
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