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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 information applies to the questions displayed below] a. On October 1, the Business Students' Society (BSS) placed an order for 150 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 shitts 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 defectlve so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13 COn October 5, BSS recelved student and faculty orders for 100 golf shirts, at a unit price of $65, on terms 2/10,n/30. g. The golf shirts were delvered 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 shits were returned by customers to BSS. 1. On October 20, an allowance was given on account equal to $1700 per shirt for the remaining 50 shirts. 1. The customers paid their temaining balances on the last day of the month. October 31 C6-2 (Algo) Part 1 1. Prepare journal entries for the transactions described in events (a) through (. 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.) [The following information applies to the questions displayed below] a. On October 1. the Business Students' Society (BSS) placed an order for 150 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 goll shirts were returned to the supplier d. On October 12. BSS complained the remaining goif shirts were slightly defectlve so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13. 1. On October 5, BSS recelved student and faculty orders for 100 golf shirts, at a unit price of $65, 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 retuned or given an allowance (see h and %. Uncertain whether customers would keep or retuin 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 retuined by customers to BSS 1. On Oclober 20, an allowance was given on account equal to $17.00 pei shirt for the remaining 50 shirts 1. The customers poid their remaining balances on the last day of the month, October 31 C6-2 (Algo) Part 2 2. Piepore adjusting foumal enties to accrue office expenses of $550 incurred on account and to accrue income taxes of $183. (If no entry is required for o transaction/ovent, select "No Journal Entry Required" in the first occount field.) [The following information applies to the questions displayed below] a. On October 1, the Business Students Society (BSS) placed an order for 150 golf shirts at a unit cost of $30, under terms 2/10n/30. b. The order was received on October 10, but some golf shirts ditfered 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 coll shits 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 goif shirts on October 13. 1. On October 5, BSS recelved student and faculty orders for 100 golf shirts, at a unit price of $65, on terms 2/10,n/30. 9. The goif shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with the goil shirts, so BSS permitted them to be retumed or given an allowance (see h and . Uncertain whether customers would keep of 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 retumed by customers to BSS 1. On October 20, an allowance was given on occount equal to $17,00 per shitt for the remaining 50 shitis. 7. The customers paid their remaining balances on the last day of the month, October 31. C6-2 (Algo) Part 3 3. Repoit the financial effects of the above transoctions in a multistep income statement for the month ended October 31 prepared for exiernal use

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