Check my work Problem 6-6A Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3,6-4, 6-5, 6- 6) The following information applies to the questions displayed below] At the beginning of October, Bowser Co's inventory consists of 68 units with a cost per unit of $32. The following transactions occur during the month of October Oetober 4 Purchase 112 units of inventory on account from Waluigi Co. for $50 per unit, terps 2/10, n/30. October 5 Pay cash for freight charges related to the october 4 purchase, $552. october 9 Return 20 defective units from the October 4 purchase and receive eredit. October 12 Pay Waluigi Co. in full Oetober 15 Sell 142 units of inventory to customers on account, $11,360. (Hinti The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for the purchase discount, or $55 per unit.1 October 19 Receive full paynent from cuatomers related to the sale on October 15. October 20 Purchase 82 units of inventory from Waluigi Co. for $52 per unit, terma 1/10, n/30 October 22 Sel1 82 unite of inventory to customers for cash, $6,560 Problem 6-6A Part 1 Required 1. Assuming that Bowser Co. uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first acc ount field.) At the beginning of October Bowser Co.'s inventory consists of 68 units with a cost per unit of $32. The following transactions occur during the month of October october 4 Purchase 112 units of inventory on account from Waluigi co. for $50 per unit, terms 2/10, n/30. october 5 Pay cash for freight charges related to the October 4 purchase, $552. October 9 Return 20 defective units Erom the October 4 purchase and receive aredit. October 12 Pay Waluigi Co. in full. october 15 Sell 142 units of inventory to customers on account, $11,360. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for the purchase discount, or $55 per unit.) October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 82 units of inventory from Waluigi Co. for $52 per unit, terms 1/10, n/30. October 22 Se11 82 units of inventory to customers for cash, $6,560 Problem 6-6A Part 2 2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $27. Record any necessary adjustment for lower of cost and net realizable value. (If no entry is required fora transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet At the beginning of October, Bowser Co.'s inventory consists of 68 units with a cost per unit of $32. The following transactions occur during the month of October Ogtober 4 Purchase 112 unita of inventory on account from Waluigi co. for $50 per unit, terns October 5 Pay cash for freight charges related to the October 4 purchase, $552. october 9 Return 20 defective units from the October 4 purchase and receive credit. 2/10, n/30. 442 ansts of inventory to eustamers on account, $11.36o. [Rints he cost of Pay Waluigi Co. in full. oetober 13 October 15 Sell 142 units of inventory to customers on account, $11,360. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for, the purchase discount, or $55 per unit. October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 82 units of inventory from Waluigi co. for $52 per unit, terma 1/10, n/30. October 22 Sell 82 unite of inventory to customers for cash, $6,560. Problem 6-6A Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjustment for lower of cost and net realizable value. BOWSER CO Multiple-step Income Statement (partial) For the month of October
