October 4: Record purchase of 117 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30 - October 5: Record payment of cash freight charges related to the October 4 purchase, $485 - October 9: Record return of 20 defective units from the October 4 purchase and receive credit. - October 12: Record payment to Waluigi Co. in full. - October 15: Record the sale of 147 units of inventory to customers on account, $11,760 - October 15: Record the cost of inventory sold. - October 19: Record receipt of full payment from customers related to the sale on October 15 - October 20: Record purchase of 87 units of inventory from Waluigi Co. for $57 per unit, terms 2/10, n/30 - October 22: Record the sale of 87 units of inventory to customers for cash, $6,960 - October 22: Record the cost of Inventory sold.
U7 Required Information 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 (L06-2, 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 63 units with a cost per unit of $37. The following transactions occur during the month of October October 4 Purchase 117 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, $485. October 9 Return 20 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 147 units of inventory to customers on account, $11,768. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $54 per unit.] October 19 Receive full payment from customers related to the sale on October 15. October 2e Purchase 87 units of inventory from Waluigi Co. for $57 per unit, terms 2/10, n/30. October 22 Sell 87 units of inventory to customers for cash, $6,960. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.) 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 requlred for a transaction/event, select "No Journal Entry Requlred" In the first account fleld.) Journal entry worksheet 4 5 6 7 8 9 10 > Record payment to Waluigi Co. in full. Note: Enter debits before credits. Date General Journal Debit Credit October 12 Required Information 6 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 (L06-2, 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 63 units with a cost per unit of $37. The following transactions occur during the month of October October 4 Purchase 117 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, $485. October 9 Return 2e defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 147 units of inventory to customers on account, $11,760. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $54 per unit.] October 19 Receive full payment from customers related to the sale on October 15. October 2e Purchase 87 units of inventory from Waluigi Co. for $57 per unit, terms 2/10, n/30. October 22 Sell 87 units of inventory to customers for cash, $6,960. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 2e.) 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 $31. Record any necessary adjustment for lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet
