Required 1 Required 2 Required 3 Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $35. Record any necessary adjusting entry for lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal 1 October 31 Cost of Goods Sold Inventory Required 1 Required 2 Required 3 Debit Credit Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjusting entry for lower of cost and net realizable value. BOWSER COMPANY Multiple-Step Income Statement (partial) For the Month of October Net Sales Required 1 Required 2 Required 3 Assuming that Bowser Company uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fie No Date 1 October 04 Inventory Accounts Payable 2 October 05 Inventory Cash 3 October 09 Accounts Payable Inventory General Journal Debit Credit 6,200 6,200 570 570 500 500 4 October 12 Accounts Payable 5,700 Inventory 114 Cash 5,586 5 October 15 Accounts Receivable 12,320 Sales Revenue 12,320 в October 15 Cost of Goods Sold 7,756 Inventory 7,756 7 October 19 Cash 12,320 Accounts Receivable 12,320 8 October 20 Inventory 6,016 Accounts Payable 6,016 9 October 22 Cash Sales Revenue 10 October 22 Cost of Goods Sold Inventory 0 7,520 7,520 5,756 5,756
Can you help me with #10 of part 1, and the other parts of the question? Thanks!
At the beginning of October, Bowser Company’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 Company 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 receipt of credit.
October 12 Pay Waluigi Company in full.
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 Company for $64 per unit.
October 22 Sell 94 units of inventory to customers for cash, $7,520.
Required:
1. Assuming that Bowser Company uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions.
2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $35. Record any necessary adjusting entry for lower of cost and net realizable value.
3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjusting entry for lower of cost and net realizable value.
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