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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 56 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 56 units with a cost per unit of $44. The following transactions occur during the month of October October 4 Purchase 124 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, $570. October 9 Return 10 defective units from the October 4 purchase and receive credit. October 15 Sell 154 units of inventory to customers on account, $12,320. (Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $54 per unit.) October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 94 units of inventory from Waluigi Co. for $64 per unit, terms 2/10, n/30. October 22 Sell 94 units of inventory to customers for cash, $7,520. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.) 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
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