Business, 06.06.2020 17:00 Isrene

Required information 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). The following information applies to the questions displayed. At the beginning of October, Bowser Co.'s inventory consists of 66 units with a cost per unit of $34. The following transactions occur during the month of October. October 4 Purchase 114 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30. October 5 Pay cash for freight charges related to the October 4 purchase, $445. October 9 Return 25 defective units from the October 4 purchase and receive credit. October 12 Pay Waluigi Co. in full. October 15 Sell 144 units of inventory to customers on account, $11,520. [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. October 20 Purchase 84 units of inventory from Waluigi Co. for $54 per unit, terms 2/10, n/30. October 22 Sell 84 units of inventory to customers for cash, $6,720.

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