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give answer in 2 step with explanation at the end of each step and final answer at the end:a Eg Required information Sa (€6-2 (Algo) Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gro ~ Discounts, and Adjusting Income Tax (Chapters 4 and 6) [LO 4-2, LO 6-3, LO 6-4, LO 6-6 wi mm following information applies to the questions displayed below] 7a 9g {= The Business Students’ Society (BSS) experienced the following events during the month of October Res br’ I" 8 On October 1, BSS placed an order for 220 golf shirts at a unit cost of $30, under terms 2/10, n/30. “| b The order was received on October 10, but some golf shits differed from what had been ordered: Uncertain | the shits would be retuned or kept, BSS decided to record any purchase discount only whe take (Using | 2 = | method) file S| c On October 11, 30 golf shirts were returned to the supplier. Ea Il d On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted 8 $10¢ | allowance. Sh "|" BSS paid for the golf shirts on October 13. ET | £0n October 5. BSS received student and faculty orders for 190 golf shirts, at a unit price of $72, on terms 240 |g The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with th | shirts, so BSS permitted them to be returned or given an allowance (see hand J. Uncertain whether customers ~ keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method * h On October 19, one-half of the golf shirts were returned by customers to BSS. pe i. On October 20, an allowance was given on account equal to $24.00 per shirt for the remaining 95 shirts \ J The customers paid their remaining balances on the last day of the month, October 31. No further feu le ha Ee ZA al entries for the transactions described in events (3) through (), using the BE BE CERI TNs trp [ EAL ES he den

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give answer in 2 step with explanation at the end of each step and final answer at the end:Uploaded Imagea Eg Required information Sa (€6-2 (Algo) Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gro ~ Discounts, and Adjusting Income Tax (Chapters 4 and 6) [LO 4-2, LO 6-3, LO 6-4, LO 6-6 wi mm following information applies to the questions displayed below] 7a 9g {= The Business Students’ Society (BSS) experienced the following events during the month of October Res br’ I" 8 On October 1, BSS placed an order for 220 golf shirts at a unit cost of $30, under terms 2/10, n/30. “| b The order was received on October 10, but some golf shits differed from what had been ordered: Uncertain | the shits would be retuned or kept, BSS decided to record any purchase discount only whe take (Using | 2 = | method) file S| c On October 11, 30 golf shirts were returned to the supplier. Ea Il d On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted 8 $10¢ | allowance. Sh "|" BSS paid for the golf shirts on October 13. ET | £0n October 5. BSS received student and faculty orders for 190 golf shirts, at a unit price of $72, on terms 240 |g The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with th | shirts, so BSS permitted them to be returned or given an allowance (see hand J. Uncertain whether customers ~ keep or return the shirts, BSS decided to record any sales discount only when taken (using the gross method * h On October 19, one-half of the golf shirts were returned by customers to BSS. pe i. On October 20, an allowance was given on account equal to $24.00 per shirt for the remaining 95 shirts \ J The customers paid their remaining balances on the last day of the month, October 31. No further feu le ha Ee ZA al entries for the transactions described in events (3) through (), using the BE BE CERI TNs trp [ EAL ES he den

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Asked by: Aman
Created at: 2025-10-18 06:04:19

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## Step 1: Analyze Transactions and Prepare Journal Entries (a–e) Let's break down each transaction and explain the journal entry for each. --- ### a. **October 1: Placed order for 220 golf shirts** **No journal entry** is required when placing an order. The transaction occurs when goods are received. **Explanation:** Just placing an order does not affect the accounts. --- ### b. **October 10: Received order (220 shirts at $30 each, terms 2/10, n/30)** **Journal Entry:** - Inventory (220 × $30) = $6,600 Debit Inventory: $6,600 Credit Accounts Payable: $6,600 **Explanation:** Inventory is increased for the cost of shirts received, and a liability is recognized to the supplier. --- ### c. **October 11: Returned 30 golf shirts** **Journal Entry:** - Return (30 × $30) = $900 Debit Accounts Payable: $900 Credit Inventory: $900 **Explanation:** Inventory is reduced for the returned shirts, and the liability to the supplier is reduced. --- ### d. **October 12: Allowance granted ($100) for defective shirts** **Journal Entry:** Debit Accounts Payable: $100 Credit Inventory: $100 **Explanation:** Inventory is reduced for the value of the allowance given by the supplier, and the liability is reduced. --- ### e. **October 13: Paid for golf shirts, less returns/allowance, after discount period** - Amount owed after returns (190 × $30 = $5,700) - Less $100 allowance = $5,600 - Paid after discount period, so **no discount**. **Journal Entry:** Debit Accounts Payable: $5,600 Credit Cash: $5,600 **Explanation:** Since payment was made after the discount period, BSS pays the full adjusted amount. --- ## Step 2: Analyze Sales and Customer Returns/Allowances (f–j) --- ### f. **October 5: Sold 190 golf shirts at $72 each, terms 2/10, n/30** **Journal Entry:** - Sales revenue: 190 × $72 = $13,680 Debit Accounts Receivable: $13,680 Credit Sales Revenue: $13,680 **COGS Entry:** - Cost: 190 × $30 = $5,700 Debit Cost of Goods Sold: $5,700 Credit Inventory: $5,700 **Explanation:** Sales and associated cost are recognized when shirts are delivered. --- ### g. **October 18: Delivered shirts to customers** **No additional entry** needed; already recorded when shirts were sold/delivered. --- ### h. **October 19: Customers returned half (95) of shirts** **Journal Entry:** - Sales return: 95 × $72 = $6,840 Debit Sales Returns and Allowances: $6,840 Credit Accounts Receivable: $6,840 **COGS Entry:** - Cost: 95 × $30 = $2,850 Debit Inventory: $2,850 Credit Cost of Goods Sold: $2,850 **Explanation:** Reverse the revenue and COGS for returned shirts. --- ### i. **October 20: Allowance to customers ($24 per remaining 95 shirts)** **Journal Entry:** - Allowance: 95 × $24 = $2,280 Debit Sales Returns and Allowances: $2,280 Credit Accounts Receivable: $2,280 **Explanation:** Allowance reduces the amount owed by customers for defective shirts. --- ### j. **October 31: Customers paid remaining balances** - Remaining after returns and allowance: - Initial sale: $13,680 - Less return: $6,840 - Less allowance: $2,280 - Net receivable: $4,560 **Journal Entry:** Debit Cash: $4,560 Credit Accounts Receivable: $4,560 **Explanation:** Customers pay off the remaining amount owed. --- ## **Final Answer: Summary of Journal Entries** 1. **Oct 1:** No entry (order placed) 2. **Oct 10:** - Dr. Inventory $6,600 - Cr. Accounts Payable $6,600 3. **Oct 11:** - Dr. Accounts Payable $900 - Cr. Inventory $900 4. **Oct 12:** - Dr. Accounts Payable $100 - Cr. Inventory $100 5. **Oct 13:** - Dr. Accounts Payable $5,600 - Cr. Cash $5,600 6. **Oct 5:** - Dr. Accounts Receivable $13,680 - Cr. Sales Revenue $13,680 - Dr. Cost of Goods Sold $5,700 - Cr. Inventory $5,700 7. **Oct 19:** - Dr. Sales Returns and Allowances $6,840 - Cr. Accounts Receivable $6,840 - Dr. Inventory $2,850 - Cr. Cost of Goods Sold $2,850 8. **Oct 20:** - Dr. Sales Returns and Allowances $2,280 - Cr. Accounts Receivable $2,280 9. **Oct 31:** - Dr. Cash $4,560 - Cr. Accounts Receivable $4,560 --- **Each entry is explained above. Final answer: See summary of journal entries above.**

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