Problem $6-6$A $($Algo$)$ Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value $($LO$6-2,6-3,6-4,6-5,6-6)$

At the beginning of October, Bowser Company$$s inventory consists of $64$ units with a cost per unit of $$36.$ The following transactions occur during the month of October.

$$

October $4$Purchase $116$ units of inventory on account from Waluigi Company for $$50$ per unit, terms $2/10,$ n$/30.$October $5$Pay cash for freight charges related to the October $4$ purchase, $$672.$October $9$Return $20$ defective units from the October $4$ purchase and receipt of credit.October $12$Pay Waluigi Company in full.October $15$Sell $146$ units of inventory to customers on account, $$11,680.($Hint: The cost of units sold from the October $4$ purchase includes $$50$ unit cost plus $$7$ per unit for freight less $$1$ per unit for the purchase discount, or $$56$ per unit.$)$October $19$Receive full payment from customers related to the sale on October $15.$October $20$Purchase $86$ units of inventory from Waluigi Company for $$56$ per unit.October $22$Sell $86$ units of inventory to customers for cash, $$6,880.$

Required:

$1.$ Assuming that Bowser Company uses a FIFO perpetual inventory 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 $$30.$ 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. Problem $6-6$A $($Algo$)$ Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value $($LO$6-2,6-3,6-4,6-5,6-6)$

At the beginning of October, Bowser Company's inventory consists of $64$ units with a cost per unit of $\backslash (\backslash$$ $36\backslash ).$ The following transactions occur during the month of October.

$```$

October $4$ Purchase $116$ units of inventory on account from Waluigi Company for $$50$ per unit, terms $2/10,$ n$/30.$

October $5$ Pay cash for freight charges related to the October $4$ purchase, $$672.$

October $9$ Return $20$ defective units from the October $4$ purchase and receipt of credit.

October $12$ Pay Waluigi Company in full.

October $15$ Sell $146$ units of inventory to customers on account, $$11,680.($Hint: The cost of units sold from the October $4$ purchase

includes $$50$ unit cost plus $$7$ per unit for freight less $$1$ per unit for the purchase discount, or $$56$ per unit.$)$

October $19$Receive full payment from customers related to the sale on October $15.$

October $20$ Purchase $86$ units of inventory from Waluigi Company for $$56$ per unit.

October $22$ Sell $86$ units of inventory to customers for cash, $$6,880.$

$```$

Required:

$1.$ Assuming that Bowser Company uses a FIFO perpetual inventory 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 $\backslash (\backslash$$ $30\backslash ).$ 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. Required $1$

Required $2$

Required $3$

Assuming that Bowser Company uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & Date & & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & October $04$ & Inventory & $\backslash ($ V $\backslash )$ & $5,800$ & $\backslash \backslash$

$\backslash$hline & & Accounts Payable & $\backslash (\backslash$checkmark $\backslash )$ & & $5,800\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $2$ & October $05$ & Inventory & $\backslash [$

$\backslash$theta

$\backslash ]$ & $672$ & $\backslash \backslash$

$\backslash$hline & & Cash & $\backslash (\backslash$square $\backslash )$ & & $672\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $3$ & October $09$ & Accounts Payable & & $1,000$ & $\backslash \backslash$

$\backslash$hline & & Inventory & $(2)$ & & $1,000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $4$ & October $12$ & Accounts Payable & $($V$)$ & $4,800$ & $\backslash \backslash$

$\backslash$hline & & Cash & $2$ & & $4,704\backslash \backslash$

$\backslash$hline & & Inventory & $\backslash (\backslash$checkmark $\backslash )$ & & $96\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $5$ & October $15$ & Accounts Receivable & $2$ & $11,680$ & $\backslash \backslash$

$\backslash$hline & & Sales Revenue & $2$ & & $11,680\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Answer is complete but not entirely correct.

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 realizable value per unit of $\backslash (\backslash$$ $30\backslash ).$ Record any necessary adjusting entry for lower of cost and net realizable value. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$ Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

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.