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Required information [The following information applies to the questions displayed below.] At the beginning of October, Bowser Co.'s inventory consists of 64 units with a
Required information [The following information applies to the questions displayed below.] At the beginning of October, Bowser Co.'s inventory consists of 64 units with a cost per unit of $36. The following transactions occur during the month of October October 4 Purchase 116 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30. October 5 Pay cash for freight charges related to the October 4 purchase, $672. October 9 Return 20 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 146 units of inventory to customers on account, $11,680. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $7 per unit for freight less $1 per unit for the purchase discount, or $56 per unit.] October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 86 units of inventory from Waluigi Co. for $56 per unit, terms 3/10, n/30. October 22 Sell 86 units of inventory to customers for cash, $6,880. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.) 1. Assuming that Bowser Co. uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. (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 2 3 4 5 6 7 8 9 10 > Record the cost of inventory sold. Note: Enter debits before credits. Date General Journal Debit Credit October 15 Cost of Goods Sold Record entry Clear entry View general journal
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