Ski Europe sells a wide variety of products and uses the periodic inventory method. During October,...

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Ski Europe sells a wide variety of products and uses the periodic inventory method. During October, the company engaged in the following merchandising transactions. Terms of 2/10, n/30 are offered on all credit sales. Oct. 3 Sold merchandise left over from last season to Freight Liquidators for $32,880 cash. Oct. 9 Sold merchandise on account to Metterhorn Lodge, $24,820. Oct. 12 Metterhorn Lodge returned $420 of merchandise purchased on Oct. 9. Full credit was given to Metterhorn Lodge for this return. Oct. 16 Purchased merchandise on account from Sports Fashions for $18,900: Oct. 17 Oct. 19 terms, 2/10, n/30. Paid freight charges on shipment received from Sports Fashions, $126. Received a check for $23,912 from Metterhorn Lodge in full settlement of the Oct. 9 sale, less the return on Oct. 12 and the allowable sales discount. Oct. 22 Purchased merchandise on account from Outdoor Products, $17,100; terms, 5/10, n/60. Oct. 24 Returned defective goods costing $900 to Outdoor Products. Received full credit on our account.. Oct. 26 Paid Sports Fashions for the purchase on Oct. 16, less 2%. Required: a. Prepare journal entries to record these transactions. b. Prepare a partial income statement for October, showing the accounts included in computing net sales, the cost of goods sold, and gross profit. Assume that inventory was $31,400 on September 30, and $33,920 on October 31. Ski Europe sells a wide variety of products and uses the periodic inventory method. During October, the company engaged in the following merchandising transactions. Terms of 2/10, n/30 are offered on all credit sales. Oct. 3 Sold merchandise left over from last season to Freight Liquidators for $32,880 cash. Oct. 9 Sold merchandise on account to Metterhorn Lodge, $24,820. Oct. 12 Metterhorn Lodge returned $420 of merchandise purchased on Oct. 9. Full credit was given to Metterhorn Lodge for this return. Oct. 16 Purchased merchandise on account from Sports Fashions for $18,900: Oct. 17 Oct. 19 terms, 2/10, n/30. Paid freight charges on shipment received from Sports Fashions, $126. Received a check for $23,912 from Metterhorn Lodge in full settlement of the Oct. 9 sale, less the return on Oct. 12 and the allowable sales discount. Oct. 22 Purchased merchandise on account from Outdoor Products, $17,100; terms, 5/10, n/60. Oct. 24 Returned defective goods costing $900 to Outdoor Products. Received full credit on our account.. Oct. 26 Paid Sports Fashions for the purchase on Oct. 16, less 2%. Required: a. Prepare journal entries to record these transactions. b. Prepare a partial income statement for October, showing the accounts included in computing net sales, the cost of goods sold, and gross profit. Assume that inventory was $31,400 on September 30, and $33,920 on October 31.

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