At the beginning of October, Bowser Company's inventory consists of 69 units with a cost per unit of $31. The following transactions Occur during the month of October. October 4 Purchase 111 units of inventory on account from Waluigi Company for $50 per unit, terms 2/10, ¹/30 - October 5 Pay cash for freight charges related to the October 4 purchase, $430. October 9 Return 25 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Company in full. October 15 Sell 141 units of inventory to customers on account, $11,280. (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. Required: Assuming Bowser Company uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. Complete this question by entering your answers in the tabs below.

At the beginning of October, Bowser Company's inventory consists of 69 units with a cost per unit of $31. The following transactions Occur during the month of October. October 4 Purchase 111 units of inventory on account from Waluigi Company for $50 per unit, terms 2/10, ¹/30 - October 5 Pay cash for freight charges related to the October 4 purchase, $430. October 9 Return 25 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Company in full. October 15 Sell 141 units of inventory to customers on account, $11,280. (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. Required: Assuming Bowser Company uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. Complete this question by entering your answers in the tabs below.

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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