Required information [The following information applies to the questions displayed below.) At the beginning of October, Bowser Co.'s inventory consists of 62 units with a cost per unit of $38. The following transactions occur during the month of October October 4 Purchase 118 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, $588. October 9 Return 20 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 148 units of inventory to customers on account, $11,040. (Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for the purchase discount, or $55 per unit. October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 88 units of Inventory from Waluigi Co. for $58 per unit, terms 1/10, n/30. October 22 Sell 88 units of inventory to customers for cash, $7,040. (Note: Tor 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 Net Sales $ Cost of Goods Sold 18,880 Gross Profit Required information [The following information applies to the questions displayed below.) At the beginning of October, Bowser Co.'s inventory consists of 62 units with a cost per unit of $38. The following transactions occur during the month of October October 4 Purchase 118 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, $588. October 9 Return 20 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 148 units of inventory to customers on account, $11,040. (Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $6 per unit for freight less $1 per unit for the purchase discount, or $55 per unit. October 19 Receive full payment from customers related to the sale on October 15. October 20 Purchase 88 units of Inventory from Waluigi Co. for $58 per unit, terms 1/10, n/30. October 22 Sell 88 units of inventory to customers for cash, $7,040. (Note: Tor 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 Net Sales $ Cost of Goods Sold 18,880 Gross Profit
