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C$6-1($Algo$)$ Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and $($Gross Method$)$ Discounts

$($Chapters $5$ and $6)[$LO $5-4,$ LO $6-3,$ LO $6-4,$ LO $6-6]$

$[$The following information applies to the questions displayed below.$]$

a$.$ On October $1,$ the Business Students' Society $($BSS$)$ placed an order for $110$ golf shirts at a unit cost of $$30,$

under terms $\frac{2}{10},\frac{n}{30}.$

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 $11,20$ 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 $90$ golf shirts, at a unit price

of $$61,$ on terms $2/10,\frac{n}{30}.$

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 $h$ and $i).$ 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 $$13\mathrm{.}00$ per shirt for the remaining $45$ shirts.

$j.$ The customers paid their remaining balances on the last day of the month, October $31.$ No further returns

are expected.

C$6-1($Algo$)$ Part $1$

Required:

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.$)$

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