60.1K

Verified Solution

Link Copied!

6-6 b

Problem 6-6A (Algo) Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3, 6-4, 6-5, 6-6) At the beginning of October, Bowser Company's inventary consists of 52 units with a cost per unit of $48. The following transactions occur during the month of October. betaber s Pay cash tor freighe ebarges related to the oetober 4 parchese, $126. october 9 Heturn 10 delective uniti frod the oetober 4 purchase and receipe of eredit. actober 12 Day Waluigh conpany in fuld. Octobef 15 sel1 15s, unlta of investory to cuetoners on account, $12,640, (Histr Fhe cast of units sold troa the Ootober 4 purchse ineludes 550 unit cont plut $7 per unit for ireight lese $1 per, unit for ehe purchalid diacoust, or (556 per meit.) Octobet 19 peceive full payrest from custonera related to the wale on ootober:15. Ootober 20 harebase 9E unlta of imventory fron Muluigi Company for $68 per unit, october 22 sel1 3b unita of inventory to custoners for combs, 57,8404 Required: 1. Assuming that Bowser Company uses a FIFO perpetual imventory system to maintain its inventory records, record the transactions. 2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $35. Record any necessary adjusting entry for lower of cost and net realizable value. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of October after the adjusting entry for lower of cost and net realizable value. Complete this question by entering your answers in the tabs below. Suppose by the end of October that the remaining inventory is estimated to have a net realizabie value per unit of \$35, Record any necessary adjusting entry for lower of cost and net realizabie value. (if no entry is required for a transsation/event, seloct "No Journal Entry Required" in the first account field.) Journal entry worksheet Record any necessary adjusting entry for lower of cost and net realizable value. Note: Inter erbats belset erndts Problem 6.6A (Algo) Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3, 6-4, 6-5, 6-6) At the beginning of October, Bowser Company's imentory consists of 52 units with a cost per unit of 548 . The following transactions occur during the month of October. October i Purchase 126 unite of inventory on aceount from Waluigl Corpany for $50 per anit, terma 2/10, n/30. Gctober 3 Vay ealh tor trelght eharget relsted to the oetober 4 purchabe, 5 pit. october, hetura 10 defective unite from the Oetober 4 parchase asd receipt of credit. October 12 Pay Madulid Coepany in full. Oetober 1sseli. 15 thits of Inventory to custasern on acoount, 312,640. (Mint the cost of unita sold fron the Oetober 4 perchase Ineluden 550 unit cost plus $7 per unit for frelght leas $1 per unit for the purehase diseount, ar $34 per unit, 8 Deteber is Mecelve full pwysent fwot cuntomers related to the sale eo Oetober is. Detober 20 Terehase 38 ustts of inventery frea Haluiqt conpany for 16t per unit, octeber 22 sell bt units of inventory to cubtomern for cash, 57,840 , Aequired: 1. Assuming that Bowser Company uses a FIFO perpetual imvontory system to maintain its invertory recerds, recerd the transactions 2. Suppose by the end of October that the remaining inventory is estimated to have a net realizable value per unit of $35. Aecord any necessafy adjusting entry for lower of cost and net realizable valie. 3. Prepare the top section of the multiple-sep income statement through gross profit for the month of October after the acjusting entry for lower of cost and net realizabler value. Complete this question by entering your answers in the tabs below. Prepare the tep section of the multplestep income statement through gross profit for the month of October after the adjusting entry for lower of cost and net realizable walue

Answer & Explanation Solved by verified expert

See Answer