Required information

C$6-2($Algo$)$ 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 $6-$S$1]$

$[$The following information applies to the questions displayed below.$]$

a$.$ On October $1,$ the Business Students' Society $($BSS$)$ placed an order for $240$ golf shirts at a unit cost of $$20,$ under terms

$\frac{2}{10},\frac{n}{30}.$

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 $11,40$ 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$.$ On October $5,$ BSS received student and faculty orders for $200$ golf shirts, at a unit price of $$74,$ on terms $\frac{2}{10},\frac{n}{30}.$

$g.$ 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 $).$ Uncertain 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$.$

i$.$ On October $20,$ an allowance was given on account equal to $$26\mathrm{.}00$ per shirt for the remaining $100$ shirts.

$j.$ The customers paid their remaining balances on the last day of the month, October $31.$

Required:

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. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry

Required" in the first account field.$)$

Prepare adjusting journal entries to accrue office expenses of $$640$ incurred on account and to accrue income taxes of $$273.($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Report the financial effects of the above transactions in a multistep income statement for the month ended October $31$ prepared for external use.