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Required information [The following information applies to the questions displayed below.) a. On October 1, the Business Students' Society (BSS) placed an order for 190 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 shirts differed from what had been ordered. Uncertain whether the shirts would be returned or kept, BSS decided to record any purchase discount only when taken (using the gross method). c. On October 11, 50 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $69, on terms 2/10, n/30. g. 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 given an allowance (see hand ). Uncertain whether customers would 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. i. On October 20, an allowance was given on account equal to $21.00 per shirt for the remaining 70 shirts. j. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected. Required: 1. For each of the events (a) through (j), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit a. 0 0 0 0 b. 5,700 0 0 0 C. (1.500) 0 0 0 d. (100) e. f. 0 0 0 0 g. 9,660 h. i. 0 0 j. 0 0 0 0

Required information [The following information applies to the questions displayed below.) a. On October 1, the Business Students' Society (BSS) placed an order for 190 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 shirts differed from what had been ordered. Uncertain whether the shirts would be returned or kept, BSS decided to record any purchase discount only when taken (using the gross method). c. On October 11, 50 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $69, on terms 2/10, n/30. g. 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 given an allowance (see hand ). Uncertain whether customers would 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. i. On October 20, an allowance was given on account equal to $21.00 per shirt for the remaining 70 shirts. j. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected. Required: 1. For each of the events (a) through (j), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit a. 0 0 0 0 b. 5,700 0 0 0 C. (1.500) 0 0 0 d. (100) e. f. 0 0 0 0 g. 9,660 h. i. 0 0 j. 0 0 0 0

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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Required information [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 190 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 shirts differed from what had been ordered. Uncertain whether the shirts would be returned or kept, BSS decided to record any purchase discount only when taken (using the gross method). c. On October 11, 50 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $69, on terms 2/10, n/30. g. 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 given an allowance (see hand 1). Uncertain whether customers would 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. i. On October 20, an allowance was given on account equal to $21.00 per shirt for the remaining 70 shirts. j. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected. Required: 1. For each of the events (a) through (), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit a. 0 0 0 0 b. 5,700 0 0 0 C. (1,500) 0 0 0 d. (100) e. f. 0 0 0 0 g. 9,660 h. İ. 0 0 j. 0 0 0 0
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] a. On October 1, the Business Students' Society (BSS) placed an order for 190 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 shirts differed from what had been ordered. Uncertain whether the shirts would be returned or kept, BSS decided to record any purchase discount only when taken (using the gross method). c. On October 11, 50 golf shirts were returned to the supplier. d. On October 12, BSS complained the remaining golf shirts were slightly defective so the supplier granted a $100 allowance. e. BSS paid for the golf shirts on October 13. f. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $69, on terms 2/10, n/30. g. 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 given an allowance (see hand 1). Uncertain whether customers would 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. i. On October 20, an allowance was given on account equal to $21.00 per shirt for the remaining 70 shirts. j. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected. Required: 1. For each of the events (a) through (), indicate the amount and direction of the effect (+ for increase, - for decrease). (Enter any decreases to account balances with a minus sign.) Event Inventory Net Sales Cost of Goods Sold Gross Profit a. 0 0 0 0 b. 5,700 0 0 0 C. (1,500) 0 0 0 d. (100) e. f. 0 0 0 0 g. 9,660 h. İ. 0 0 j. 0 0 0 0
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