Required information C6-2 (Static) 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 100 golf shirts at a unit cost of $20, 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, 20 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. On October 5, BSS received student and faculty orders for 80 golf shirts, at a unit price of $60, 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 (). 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. On October 20, an allowance was given on account equal to $12.50 per shirt for the remaining 40 shirts. The customers paid their remaining balances on the last day of the month, October 31. (Static) Part 1 C6-2 C6-2 (Static) Part 1 Required: 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.) View transaction list Journal entry worksheet 2 3 5 6 7 12 > Record the placement of the order for golf shirts. Note Enter cebits before crades Date October 01 General Journal Debit Credit Check my work Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Received student and faculty orders. Note: Enter debits before credits. Date October 05 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8..... 12 Record the inventory purchased on account. Note: Enter debits before credits. Date October 10 General Journal Debit Credit Record entry Clear entry View general journal in the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the return of the damaged inventory. Note: Enter debits before credits. Date October 11 General Journal Debit Credit View general journal Record entry Clear entry View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the allowance received for the defective inventory purchased. Note: Enter debits before credits Date October 12 General Journal Debit Credit Record entry Clear entry View general journal in the first account field.) Entry is required for a transaction/event, select "No journal entry required" View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 12 Record the payment in full. Note: Enter debits before credits Date General Journal Debit Credit October 13 View general journal Record entry Clear entry View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 12 Record the sales revenue on account for the order. Note: Enter debits before credits. Date October 18. General Journal Debit Credit Record entry Clear entry View general journal Required: 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.) View transaction list Journal entry worksheet < 1 3 4 5 6 7 8 12 Record the cost of goods sold for the order. Note: Enter debits before credits Date October 18 General Journal Debit Credit Record entry Clear entry View allournal 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.) View transaction list Journal entry worksheet < 1 4 5 6 7 8 9 12 Record the return of the unsatisfactory merchandise sold on account. Note: Enter debits before credits Date October 19 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 5 6 7 8 9 Record the cost of goods returned. Note: Enter debits before credits. Date October 19. 10 10 12 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 5 6 7 8 9 10 11 12 Record the allowance granted for the defective inventory sold on account. Note: Enter debits before credits. Date October 20 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 5 6 7 8 Record the customers' payments in full. Note: Enter debits before credits. Date October 31 6 10 10 11 12 General Journal Debit Credit Record entry Clear entry View general journal