At the beginning of October, Bowser Co's inventory consists of 54 units with a cost per unit o transactions occur during the month of October October 4 Purchase 126 units of inventory on account froe Waluigi Co. for $5e per unit, teres 2/10, /30, October S Pay cash for freight charges related to the October 4 purchase, 56. October Reture 10 defective units fron the October 4 purchase and receive credit. October 12 Pay Maluigi Co. in full. October 15 Sell 156 units of inventory to custoners on account, S12,40. (Hint The cost of units seld fros the October 4 porchase ineludes $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 payent from custoners related to the sale on October 15. October 20 Purchase 56 units of inventory from Maluigi Co. for $66 per unit, teres 1/10, /e. October 22 Sell 6 units of inventery to custoners for cash, $7,68o. (ote foe calculating the cast of inventery seld, ignore the possible purchase discount on October 20.)
At the beginning of October, Bowser Co's inventory consists of 54 units with a cost per unit o transactions occur during the month of October October 4 Purchase 126 units of inventory on account froe Waluigi Co. for $5e per unit, teres 2/10, /30, October S Pay cash for freight charges related to the October 4 purchase, 56. October Reture 10 defective units fron the October 4 purchase and receive credit. October 12 Pay Maluigi Co. in full. October 15 Sell 156 units of inventory to custoners on account, S12,40. (Hint The cost of units seld fros the October 4 porchase ineludes $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 payent from custoners related to the sale on October 15. October 20 Purchase 56 units of inventory from Maluigi Co. for $66 per unit, teres 1/10, /e. October 22 Sell 6 units of inventery to custoners for cash, $7,68o. (ote foe calculating the cast of inventery seld, ignore the possible purchase discount on October 20.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please help! due soon
![(The following information applies to the questions displayed below.]
At the beginning of October, Bowser Co's Inventory consists of 54 units with a cost per unit of $46, The following
transactions occur during the month of October
October 4 Purchase 126 units of inventory on account fron Waluigi Co. for $50 per unit, terms 2/10, n/30.
October S Pay cash for freight charges related to the October 4 purchase, 5696.
October 9 Reture 10 defective units from the October 4 purchase and receive credit.
October 12 Pay Maluigi Co. in full.
October 15 Sell 156 units of inventory to custoners on account, $12,480. [Hint: The cost of units sold from the October
4 porchase ineludes $50 unit cost plus 56 per unit for freight less $1 per unit for the purchase discount,
or $55 per unit.]
October 19 Receive full paysent froe customers related to the sale on Oetober 15.
October 20 Purchase 96 units of inventory from Haluigi Co. for $66 per unit, teres 1/10, /30.
October 22 Sell 96 units of inventory to custoners for cash, $7,680. (Note: For caleulating the cost of inventory seld,
gnore the possible purchase discount on October 20.)
3. Piepare 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22e56984-3075-4baf-a2ae-19b098a5f3fc%2Fb00a5d1e-ce7f-4fa4-b816-83dddef16fb1%2Fupgzbqd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(The following information applies to the questions displayed below.]
At the beginning of October, Bowser Co's Inventory consists of 54 units with a cost per unit of $46, The following
transactions occur during the month of October
October 4 Purchase 126 units of inventory on account fron Waluigi Co. for $50 per unit, terms 2/10, n/30.
October S Pay cash for freight charges related to the October 4 purchase, 5696.
October 9 Reture 10 defective units from the October 4 purchase and receive credit.
October 12 Pay Maluigi Co. in full.
October 15 Sell 156 units of inventory to custoners on account, $12,480. [Hint: The cost of units sold from the October
4 porchase ineludes $50 unit cost plus 56 per unit for freight less $1 per unit for the purchase discount,
or $55 per unit.]
October 19 Receive full paysent froe customers related to the sale on Oetober 15.
October 20 Purchase 96 units of inventory from Haluigi Co. for $66 per unit, teres 1/10, /30.
October 22 Sell 96 units of inventory to custoners for cash, $7,680. (Note: For caleulating the cost of inventory seld,
gnore the possible purchase discount on October 20.)
3. Piepare 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.
![October 4 Purchase 126 units of inventory on account from Waluigi Co. for $se per unit, terms 2/10, n/30.
October 5 Pay cash for freight charges related to the October 4 purchase, $696.
October
October 12 Pay Waluigi Co. in full.
October 15 Sell 156 units of inventory to customers on account, $12,480. [Hint: The cost of units sold froe the October
9 Return 10 defective units from the 0ctober 4 purchase and receive credit.
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 payeent from custoners related to the sale on October 15.
October 20 Purchase 96 units of inventory from Waluigi Co. for $66 per unit, teras 1/10, n/30.
October 22 Sel1 96 units of inventory to customers for cash, $7,680. (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
Net Sales
20,160
Cost of Goods Sold
14,710](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22e56984-3075-4baf-a2ae-19b098a5f3fc%2Fb00a5d1e-ce7f-4fa4-b816-83dddef16fb1%2F0k2k82_processed.jpeg&w=3840&q=75)
Transcribed Image Text:October 4 Purchase 126 units of inventory on account from Waluigi Co. for $se per unit, terms 2/10, n/30.
October 5 Pay cash for freight charges related to the October 4 purchase, $696.
October
October 12 Pay Waluigi Co. in full.
October 15 Sell 156 units of inventory to customers on account, $12,480. [Hint: The cost of units sold froe the October
9 Return 10 defective units from the 0ctober 4 purchase and receive credit.
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 payeent from custoners related to the sale on October 15.
October 20 Purchase 96 units of inventory from Waluigi Co. for $66 per unit, teras 1/10, n/30.
October 22 Sel1 96 units of inventory to customers for cash, $7,680. (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
Net Sales
20,160
Cost of Goods Sold
14,710
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