Marco Polo sells outdoor sporting equipment. You have been working for the company since its inception a few years ago and have been promoted to be their accounting manager. They use the perpetual inventory system and use the weighted average method to determine value for the inventory.

The opening balances for the month of September are as follows:

Marco Polo
Balance Sheet
As at September 30, 2020
Assets		Liabilities
Cash	$26,800	Accounts Payable	$18,700
Accounts Receivable	18,000	Bank Loan	25,000
Merchandise Inventory	12,750	Total Liabilities	$43,700
Equipment	120,000	Shareholders' Equity
Accumulated Depreciation	-40,000	Common Shares	62,000
		Retained Earnings	31,850
Total Assets	$137,550	Total Liabilities & Shareholders' Equity	$137,550

The inventory figure includes 500 units purchased at $25.5 each.

Transactions for the month of October:

Oct 1	Bought inventory from Outdoor Muzi on account, invoice #5455; 1000 units at $30 each. Terms of the purchase were 4/10, net 30. Update the inventory table after each purchase.
Oct 2	Sold goods to Outback Kian, 700 units at $100 each with invoice #4741. The invoice terms were 5/10, net 30. Update the inventory table after each sale.
Oct 5	Paid $1,200 with cheque #143 to Outdoor Muzi for an amount owing from last month.
Oct 5	Bought inventory from Climb Foe with cheque #144, 600 units at $25 per unit.
Oct 7	Returned 200 defective units to Climb Foe and received cash.
Oct 8	Received $900 from Firewood Bill for a sale on account last month.
Oct 10	Outback Kian paid invoice #4741 on time and took advantage of the early payment discount.
Oct 31	Prepared the payroll for October. Gross pay is $8,400, CPP is $416, EI is $158 and income tax is $1,680. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later.

Your staff accountant goes through the mail and opens the bank statement for the month of October provided by Fanshawe Local Bank. It is shown below.

Fanshawe Local Bank
Prepared for Marco Polo
Date	Information	Withdrawal	Deposit	Balance
	Opening Balance			12,600.00
Oct 2	Deposit		14,200.00	26,800.00
Oct 5	Chq#143	1,200.00		25,600.00
Oct 8	Deposit		66,500.00	92,100.00
Oct 8	Deposit		5,000.00	97,100.00
Oct 11	Chq#8240	2,400.00		94,700.00
Oct 31	Service Char	60.00		94,640.00

Prepare income statement for Year ending october 31, 2020