Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) [LO 5-4, LO 6-3, LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 1. h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). 1. 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 1 Required: 1. For each of the events (a) through (i), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) (LO 5-4, LO 6-3, LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 hand ). 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 2 2. Determine the percentage of net sales that is available to cover operating expenses other than cost of goods sold. (Round your answer to 1 decimal place.) Gross Profit Percentage Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) [LO 5-4, LO 6-3, LO 6-4, LO 6-6] (The following information applies to the questions displayed below.) a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 hand ). h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). 1. 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 3 3-a. As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation? 3-b. Give the journal entry, if any needed as a result of including the item discussed in requirement 3-a in the bank. Complete this question by entering your answers in the tabs below. Required 3A Required 3B As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation? BSS should this check from the bank balance on its October 31 bank reconciliation Required 3A Required 3B > Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) [LO 5-4, LO 6-3, LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 1. h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). 1. 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 1 Required: 1. For each of the events (a) through (i), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) (LO 5-4, LO 6-3, LO 6-4, LO 6-6] [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 hand ). 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 2 2. Determine the percentage of net sales that is available to cover operating expenses other than cost of goods sold. (Round your answer to 1 decimal place.) Gross Profit Percentage Required information C6-1 Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters 5 and 6) [LO 5-4, LO 6-3, LO 6-4, LO 6-6] (The following information applies to the questions displayed below.) a. On October 1, the Business Students' Society (BSS) placed an order for 270 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, 50 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 $100 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 250 golf shirts, at a unit price of $77, 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 hand ). h. Uncertain whether customers would keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method). 1. 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 $29.00 per shirt for the remaining 125 shirts. k. The customers paid their remaining balances on the last day of the month, October 31. C6-1 Part 3 3-a. As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation? 3-b. Give the journal entry, if any needed as a result of including the item discussed in requirement 3-a in the bank. Complete this question by entering your answers in the tabs below. Required 3A Required 3B As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation? BSS should this check from the bank balance on its October 31 bank reconciliation Required 3A Required 3B >