Question

Required information Part 1 of 4 2. 0.75 points [The following information applies to the questions displayed below.) 1. On October 1, the Business Students' Society (BSS) placed an order for 150 golf shirts at a unit cost of $16, under terms 2/10. The order was received on October 10, but 30 golf shirts had been damaged in shipment. On October 11, the damaged golf shirts were returned. On October 12, BSS complained that the remaining golf shirts were slightly defective so the supplier granted a GL $120 allowance. BSS paid for the golf shirts on October 13. During the first week of October, BSS received student and faculty orders for 120 golf shirts, at a unit price of $33.50, on terms 2/10, n/30. The golf shirts were delivered to these customers on October 18. Unfortunately, customers were unhappy with the golf shirts, so BSS permitted them to be returned or gave an allowance of $8.50 per shirt. On October 21, one-half of the golf shirts were returned. 9. On October 22, the remaining 60 customers were granted the allowance on account. 10. The customers paid their remaining balances during the week of October 25. 6. Du eBook Print References Required: Prepare journal entries for the transactions described above, using the date of each transaction as its reference. Assume BSS uses perpetual inventory accounts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Date	Account Name	Debit	Credit
1	No Journal Entry Required
2	Inventory	2400
	Account Payable		2400
	(being 150 golf shirt received)
3	Account Payable	480
	Inventory		480
	(being 30 shirts returned)
4	Account Payable	120
	Purchase return and allowances	120
	(being purchase allowance booked)
5	Account Payable	1800
	Cash		1800
6	No Journal entry
7	Account Receivable	4020
	Sales Revenue		4020
	Cost of Goods Sold	1920
	Inventory		1920	(2400 i.e purchase inventory - 480 i.e. returned inventory = 1920 i.e. baalnce inventory)
8	SALES Return/sales revenue	2010
	Account Receivable		2010
	Inventory	960		(half of inventory returned)
	Cost of Goods Sold		960	(half of inventory returned)
9	Sales Return/Allowance	510
	Accounts Reiveble		510
10	Cash	1500
	Accounts Recievable		1500