Required information Problem 6-7A Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2, 6-7) [The following information applies to the questions displayed below.] Baskin Robbins is one of the world's largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso 'n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021. Salaries expense Inventory (July 1, 2021) Sales returns Utilities expense Income tax expense $13,100 Sales revenue 2,000 Interest income 1,100 Cost of goods sold 3,300 Rent expense 5,400 Interest expense Inventory (July 31, 2021) $66,800 2,700 28,400 6,100 400 1,100 Problem 6-7A Part 1 Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021. KO 2 @ @ @ @ @ @ @ > Record payment of cash for freight charges related to the October 4 purchase, $672. Note: Enter debits before credits. Date General Journal Credit Debit 672 October 05 Inventory Cash 672 Journal entry worksheet Record return of 20 defective units from the October 4 purchase and receive credit. Note: Enter debits before credits. Date General Journal Credit Debit 1,000 October 09 Accounts Payable Inventory 1,000 Journal entry worksheet Record payment to Waluigi Co. in full. Note: Enter debits before credits. Debit Credit 4.800 Date General Journal October 12 [Accounts Payable Inventory Cash 96 4,704 Ko @ @ O O O O O > Record the sale of 146 units of inventory to customers on account, $11,680. Note: Enter debits before credits. Date General Journal Debit Credit October 15 Accounts Receivable 11,680 Sales Revenue 11,680 Journal entry worksheet Record the cost of inventory sold. Note: Enter debits before credits. Debit Credit Date October 15 General Journal Cost of Goods Sold Inventory Record entry Clear entry View general journal Journal entry worksheet o @ @ @ @ @ @ @ > Record receipt of full payment from customers related to the sale on October 15. Note: Enter debits before credits. Credit Date General Journal October 19 Cash Accounts Receivable Debit 11,680 11,680 2 0) Record purchase of 86 units of inventory from Waluigi Co. for $56 per unit, terms 3/10, n/30. Hote: Enter debits before credits. Credit Date General Journal October 20 Inventory Accounts Payable Debit 4,816 4,815 Record entry Clear entry View general iournal TO @ @ @ @ @ @ 3 0 > Record the sale of 86 units of inventory to customers for cash, $6,880. Note: Enter debits before credits. General Journal Credit Date October 22 Debit 6,880 Cash Sales Revenue 6,880 TO @ @ @ O O O O O 1 > Record the cost of inventory sold. Note: Enter debits before credits. Debit Credit Date General Journal | October 22 Cost of Goods Sold Inventory 2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $30. Record any necessary adjustment for lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit No 1. October 31 Cost of Goods Sold Inventory Problem 6-6A Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjustment for lower of cost and net realizable value. BOWSER CO. Multiple-step Income Statement (partial) For the month of October Required information Problem 6-7A Prepare a multiple-step income statement and calculate the inventory turnover ratio and gross profit ratio (LO6-2, 6-7) [The following information applies to the questions displayed below.] Baskin Robbins is one of the world's largest specialty ice cream shops. The company offers dozens of different flavors, from Very Berry Strawberry to lowfat Espresso 'n Cream. Assume that a local Baskin-Robbins in Raleigh, North Carolina, has the following amounts for the month of July 2021. Salaries expense Inventory (July 1, 2021) Sales returns Utilities expense Income tax expense $13,100 Sales revenue 2,000 Interest income 1,100 Cost of goods sold 3,300 Rent expense 5,400 Interest expense Inventory (July 31, 2021) $66,800 2,700 28,400 6,100 400 1,100 Problem 6-7A Part 1 Required: 1. Prepare a multiple-step income statement for the month ended July 31, 2021. KO 2 @ @ @ @ @ @ @ > Record payment of cash for freight charges related to the October 4 purchase, $672. Note: Enter debits before credits. Date General Journal Credit Debit 672 October 05 Inventory Cash 672 Journal entry worksheet Record return of 20 defective units from the October 4 purchase and receive credit. Note: Enter debits before credits. Date General Journal Credit Debit 1,000 October 09 Accounts Payable Inventory 1,000 Journal entry worksheet Record payment to Waluigi Co. in full. Note: Enter debits before credits. Debit Credit 4.800 Date General Journal October 12 [Accounts Payable Inventory Cash 96 4,704 Ko @ @ O O O O O > Record the sale of 146 units of inventory to customers on account, $11,680. Note: Enter debits before credits. Date General Journal Debit Credit October 15 Accounts Receivable 11,680 Sales Revenue 11,680 Journal entry worksheet Record the cost of inventory sold. Note: Enter debits before credits. Debit Credit Date October 15 General Journal Cost of Goods Sold Inventory Record entry Clear entry View general journal Journal entry worksheet o @ @ @ @ @ @ @ > Record receipt of full payment from customers related to the sale on October 15. Note: Enter debits before credits. Credit Date General Journal October 19 Cash Accounts Receivable Debit 11,680 11,680 2 0) Record purchase of 86 units of inventory from Waluigi Co. for $56 per unit, terms 3/10, n/30. Hote: Enter debits before credits. Credit Date General Journal October 20 Inventory Accounts Payable Debit 4,816 4,815 Record entry Clear entry View general iournal TO @ @ @ @ @ @ 3 0 > Record the sale of 86 units of inventory to customers for cash, $6,880. Note: Enter debits before credits. General Journal Credit Date October 22 Debit 6,880 Cash Sales Revenue 6,880 TO @ @ @ O O O O O 1 > Record the cost of inventory sold. Note: Enter debits before credits. Debit Credit Date General Journal | October 22 Cost of Goods Sold Inventory 2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $30. Record any necessary adjustment for lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date General Journal Debit Credit No 1. October 31 Cost of Goods Sold Inventory Problem 6-6A Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjustment for lower of cost and net realizable value. BOWSER CO. Multiple-step Income Statement (partial) For the month of October