C6-2 (Algo) Preparlng Journal Entrles for Inventory Purchoses, Sales, Returns, and (Gross Method) Dlscounts, and Ad]usting Income Tox (Chapters 4 and 6) [LO 6.3, LO 6.4, LO 6-6, LO 6.S1] [The following information applies to the questions alisplayed below.] a. On October 1, the Business Students' Soclety (BSS) placed an order for 130 golf shirts at a unit cost of $30, under terms 2/10,n/30. b. The order was recelved on October 10 , but some golf shirts differed from what had been ordered. Uncertaln whether the shirts would be returned or kept, BSS decided to record any purchase discount only when taken (using the gross method). c. On October 11,40 golf shirts were returned to the supplier. d. On October 12, BSS complalned the remaining golf shirts were slightly defectlve so the supplier granted a $100 allowance. e. BSS pald for the golf shirts on October 13 . f. On October 5 , BSS recelved student and faculty orders for 90 golf shirts, at a unit price of $63, on terms 2/10,n/30. g. The golf shirts were dellvered to these customers on October 18. Unfortunately, customers were unhappy with the golf shirts, so BSS permitted them to be returned or glven an allowance (see h and ). Uncertaln whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). h. On October 19 , one-half of the golf shirts were returned by customers to BSS. L. On October 20 , an allowance was given on account equal to $15.00 per shirt for the remaining 45 shirts. f. The customers pald thelr remalning balances on the last day of the month, October 31. 6.2 (Algo) Part 3 Report the financlal effects of the above transactions in a multistep Income statement for the month ended October 31 prepared fo external use