a. On October 1, the Business Students' Society (BSS) placed an order for 170 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, 30 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 $200 allowance. e. BSS paid for the golf shirts on October 13. 7. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $67, 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 and J. 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. On October 20, an allowance was given on account equal to $19.00 per shirt for the remaining 70 shirts. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected.
a. On October 1, the Business Students' Society (BSS) placed an order for 170 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, 30 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 $200 allowance. e. BSS paid for the golf shirts on October 13. 7. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $67, 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 and J. 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. On October 20, an allowance was given on account equal to $19.00 per shirt for the remaining 70 shirts. The customers paid their remaining balances on the last day of the month, October 31. No further returns are expected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:a. On October 1, the Business Students' Society (BSS) placed an order for 170 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, 30 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 $200
allowance.
e. BSS paid for the golf shirts on October 13.
*. During the first week of October, BSS received student and faculty orders for 140 golf shirts, at a unit price of $67, 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.
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
a.
b.
On October 20, an allowance was given on account equal to $19.00 per shirt for the remaining 70 shirts.
The customers paid their remaining balances on the last day of the month, October 31. No further returns are
expected.
C.
d.
f.
g.
h.
i.
j.
Inventory Net Sales Cost of Goods Sold Gross Profit
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