Need help with all of these questions please On October 1, BSS placed an order f
ID: 2542712 • Letter: N
Question
Need help with all of these questions please
On October 1, BSS placed an order for 150 golf shirts at a unit cost of $26, under terms 2/10, n/30. Record the place of the order for golf shirts. 1. 2. The order placed on October 1 was received by BSS on October 10, but 30 golf shirts had been 3. damaged in shipment. Record the inventory purchased on account. On October 11, the 30 damaged golf shirts were returned. Record the return of the damaged inventory. On October 12, BSS complained that the remaining golf shirts were slightly defective so the supplier grated a $220 allowance. Record the allowance received for the defective inventory purchased. 4. 5. On October 13, BSS paid for the golf shirts. Record the payment in ful. During the first week of October BSS received student and faculty orders for 120 golf shirts, at a unit price of $43.50, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18 Record the sales revenue on account for the order. During the first week of October BSS received student and faculty orders for 120 golf shirts, at a unit price of $43.50, on terms 2/10, n/30. The golf shirts were delivered to the customers on October 18 Record the cost of goods sold for the order 6. 7. 8. Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $11.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the return of the unsatisfactory merchandise sold on account. 9. Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $11.00 per shirt. On October 21, one-half of the golf shirts were returned by customers. Record the cost of goods returned. 10. Customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $11.00 per shirt On October 22, the remaining 60 customers were granted the allowance. Record the allowance granted for the defective inventory sold on account. On October 25, the customers paid their remaining balances due on account. Record the customers' payments in full. 11. 12. As of October 31, the payment of inventory ordered in full dated October 13 had not yet cleared the bank. Record the Otober 13 check that had not yet cleared the bank.Explanation / Answer
1 Date General Journal Debit Credit Oct.1 No Journal entry required for order received Oct.10 Purchase $3,900 Creditors $3,900 Oct.11 Creditors $780 Purchase return $780 Oct.12 Creditors $220 Rebate $220 Oct.13 Creditors $2,900 Bank $2,900 Oct.18 Debtors $5,220 Sales $5,220 Oct.18 Cost of Goods $3,120 Purchase $3,120 Oct.21 Sales Return $2,610 Debtors $2,610 Oct.21 Purchase $1,560 Cost of Goods $1,560 Oct.22 Allowance/Rebate $660 Debtors $660 Oct.25 Bank $1,950 Debtors $ 1,950 Oct.31 No Journal entry required for check issued on Oct 13 not cleared 2 Business Student Society Income Statement For the Month Ended October 31 Revenue Sales $ 5,220 Sales Return $ -2,610 Net Sales $ 2,610 Rebate Earned $ 220 $ 2,830 Expenses Cost of Goods sold $ 1,560 Operating Expense $ 170 $ 1,730 $ 1,100 Rebate given $ 660 Income Tax expense $ 100 $ 340 3 Gross Profit Percentage Net Sales $ 2,610 Operating Expense $ 170 Gross Profit $ 2,440 Gross Profit % = $2,440/$2,610= 93% 4-a BSS should ADD this check from the bank balance on its October 31 bank reconciliation. 4-b Date General Journal Debit Credit Oct.31 No Journal entry required for check issued on Oct 13 not cleared