CORRECT THE WRONG NUMBERS IN THE JOUNRAL ENTRY.

2. Report the financial effects of the above transactions in a multistep income statement for the month ended October 31 prepared for internal use. Assume operating expenses, other than cost of goods sold, are $110 and income tax expense is $130.

THE SELECTIONS:

3. Determine the percentage of net sales that is available to cover operating expenses other than cost of goods sold.

4-a. As of October 31, the check dated October 13 had not cleared the bank. How should BSS report this on its October 31 bank reconciliation? (ADD or DEDUCT)

4-b. Give the journal entry, is any needed as a result of including the item discussed in requirement 4-a in the bank.