Bold Interiors reported the following transactions in October 2020: A (Click on the icon to view the transactions.) Requirements 1. Record the transactions for the month of October assuming the periodic inventory system is used. 2. Prepare a partial income statement through gross profit for the month ending October 31 , 2020. 3. Assume it is the company's year-end. Prepare the end-of-period entries to update inventory and record cost of goods sold. 4. Assume last month's gross profit percentage was 34%. Has this improved or declined in October? What likely accounts for this change? Transactions Oct. 3 5 Sold merchandise on account to Alyson O'Malley, $2,600, terms 2/10, n/30. Sold merchandise on account to Erica Button, $2,000, terms 5/10, n/30. 8 Bought $1,425 of merchandise inventory on account. Paid $140 for the freight fee on the inventory. 000 10 Collected payment from Erica Button for the October 3 sale. $2,100 of the merchandise bought on October 5. 13 Alyson O'Malley return 14 Collected payment from Alyson O'Malley for the balance of the October 5 sale 15 Returned $65 of inventory that was defective from the October 8 purchase. 26 Paid the account payable from the October 8 purchase. 31 Physical count indicated that Bold Interiors had $300 in ending inventory. The balance in beginning inventory is $450. Print Done rorer Clear All

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company fo…