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Required information C6-2 (Algo) Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gross Method) Discounts, and Adjusting Income Tax (Chapters 4 and 6) [LO

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Required information C6-2 (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-S1] [The following infarmation applies to the questions displayed below] a. On October 1, the Business Students' Society (BSS) placed an order for 300 golf shirts at a unit cost of $20, under terms 20,/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 goif shirts were returned to the supplier. d On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $300 aliowance. e. BSS paid for the golf shirts on October 13. C On October 5, BSS recelved student and foculty orders for 250 golf shirts, at a unit price of $80, on terms 2/10, n/30. g. The goif shirts were delivered to these customers on October 18 . Unfortunately, customers were unhappy with the golf shiirts, so BSS permitted them to be returned or given an allowance (see h and . Uncertain whether customers would keep or retum 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 shilts were retumed by customers to BSS. 1. On October 20, an allowance was given on account equal to $32.00 per shirt for the remaining 125 shirts. f The customers paid their remaining balances on the last day of the month. October 31 . 1. Prepare joumal entries for the transactions described in events (a) through , using the date of each transaction as its reference. Assume BSS uses perpetual imventory accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet

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