C6-2 Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gross Method) Discounts and Adjusting Income Tax (Chapters 4 and 6) [LO 6-3, LO 6-4, LO 6-6, LO 6-S1] (General Ledger) a. On October 1, the Business Students' Society (BSS) placed an order for 210 golf shirts at a unit cost of $30, under terms 2/10, n/30 b. The order was received on October 10, but some golf shirts differed from what had been ordered. Uncertain 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, 60 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $200 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 190 golf shirts, at a unit price of $71, on terms 2/10, n/30 g. The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with the golf shirts, so BSS permitted them to be returned or given an allowance (see h and h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). i. On October 19, one-half of the golf shirts were returned by customers to BSS. j.On October 20, an allowance was given on account equal to $23.00 per shirt for the remaining 95 shirts k. The customers paid their remaining balances on the last day of the month, October 31. General Journal General Income Statement Requirement Trial Balance Ledger Prepare journal entries for the transactions described in events (a) through (j), using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts and accrue office expenses of $610 incurred on account, and to accrue income taxes of $243. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lessA View transaction list View journal entry worksheet General Journal No Date Debit Credit No Journal Entry Required 1 Oct 01 Inventory 2 Oct 10 6,300 Accounts Payable 6,300 Accounts Payable 1,800 Oct 11 Inventory 1,800 Accounts Payable 3 Oct 11 1,800 Inventory 1,800 Accounts Payable 4 Oct 12 200 Inventory 200 Accounts Payable Inventory 4,300 5 Oct 13 Cash Accounts Receivable Sales Revenue Oct 18 6 7 Oct 18 Cost of Goods Sold Inventory Sales Revenue Accounts Receivable 8 Oct 19 Inventory Cost of Goods Sold Oct 19 Sales Revenue Accounts Receivable Oct 20 10 11 Oct 31 Cash Accounts Receivable Office Expenses Accounts Payable 12 Oct 31 Income Tax Expense Income Tax Payable 13 Oct 31 LC C6-2 Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gross Method) Discounts and Adjusting Income Tax (Chapters 4 and 6) [LO 6-3, LO 6-4, LO 6-6, LO 6-S1] (General Ledger) a. On October 1, the Business Students' Society (BSS) placed an order for 210 golf shirts at a unit cost of $30, under terms 2/10, n/30 b. The order was received on October 10, but some golf shirts differed from what had been ordered. Uncertain 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, 60 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $200 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 190 golf shirts, at a unit price of $71, on terms 2/10, n/30 g. The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with the golf shirts, so BSS permitted them to be returned or given an allowance (see h and h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). i. On October 19, one-half of the golf shirts were returned by customers to BSS. j.On October 20, an allowance was given on account equal to $23.00 per shirt for the remaining 95 shirts k. The customers paid their remaining balances on the last day of the month, October 31. General Journal General Income Statement Requirement Trial Balance Ledger Prepare journal entries for the transactions described in events (a) through (j), using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts and accrue office expenses of $610 incurred on account, and to accrue income taxes of $243. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show lessA View transaction list View journal entry worksheet General Journal No Date Debit Credit No Journal Entry Required 1 Oct 01 Inventory 2 Oct 10 6,300 Accounts Payable 6,300 Accounts Payable 1,800 Oct 11 Inventory 1,800 Accounts Payable 3 Oct 11 1,800 Inventory 1,800 Accounts Payable 4 Oct 12 200 Inventory 200 Accounts Payable Inventory 4,300 5 Oct 13 Cash Accounts Receivable Sales Revenue Oct 18 6 7 Oct 18 Cost of Goods Sold Inventory Sales Revenue Accounts Receivable 8 Oct 19 Inventory Cost of Goods Sold Oct 19 Sales Revenue Accounts Receivable Oct 20 10 11 Oct 31 Cash Accounts Receivable Office Expenses Accounts Payable 12 Oct 31 Income Tax Expense Income Tax Payable 13 Oct 31 LC