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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 230 golf shirts at a unit cost of $30, under terms 2/10,n/30 b. The order was recelved 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. On October 5, BSS received student and faculty orders for 180golf shirts, at a unit price of $73, on terms 2/10,n/30. g. The golf shirts were dellvered 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 ). 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. 1. On October 20 , an allowance was given on account equal to $25.00 per shirt for the remaining 90 shirts: f. The customers paid their remaining balances on the last day of the month, October 31. Prepare journal entries for the transactions described in events (b) 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.)

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