80.2K

Verified Solution

Link Copied!

Required information

sessment Tool iFrame information applies to the questions displayed below.$]$

a$.$ On October $1,$ the Business Students' Society $($BSS$)$ placed an order for $180$ golf shirts at a unit cost of $$40,$ 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 $11,60$ 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 $120$ golf shirts, at a unit price of $$68,$ on

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

$g.$ 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 $$20\mathrm{.}00$ per shirt for the remaining $60$ shirts.

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

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.$)$

Answer & Explanation Solved by verified expert

See Answer