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Halloween Guide
By: Mushroomfantasy
(Click on pictures for a larger view)

After October 16th, Tom Nook will replace some of the flowers/trees/seeds with Candy. Candy are 100 bells a pop and can be placed outside to attract ants and cockroaches. The Candy UC is:

Candy Code:
IkomyourfathzY
LiimyourfathzY
Tell: Tom Nook

Anyway, begin to stockpile candy in your house. Any amount over 20 is sufficient. You probably won't use most of it anyway. Also, fill your inventory with 10  empty letters.

On Halloween, fill your letters with candy, put on a pattern or a shirt you don't want, and then fill your inventory with fruits, stationary, items you don't want, etc. After 6 PM, all of your villagers will be wearing a pumpkin mask costume. When you get near them they will chase you, and engage in a chat. If you don't have any candy to give them, they will either turn your shirt into a Patched Shirt (That's why we have a pattern/unwanted shirt as a sacrifice) or they will turn one of your items into a jack-o'-lantern or a Jack-in-the-box. This is why we kept the candy in your letters, they're safe. The unwanted fruit and items in your inventory are so they get turned into the Halloween items, which you can then sell tomorrow for a ton of bells ( I believe around 1k each). 

One of the pumpkin costumed people will be Jack, the King of Halloween. Jack does not chase you like the other villagers. He is wandering in some random part of your town. When you figure out that he is not a villager (since he's not chasing you) take a candy out of a letter and put it into your inventory. Then talk to Jack and give him the candy. He'll eat it and give you a piece of the Spooky Furniture as a gift. Then you repeat the entire finding Jack process again. The pieces are random, so you will probably get the same piece more than once. Once you run out of candy, you can't get anymore items. The process of finding him is very exhausting and annoying so you'll probably only last through 5 or 6 searches for Jack. Over the past 2 Halloweens I've only gotten about 10 items from Jack. 

Fill your house up with your items and left over candy (eat 'em if you want!). Tomorrow sell off your extra Spooky furniture, jack-o'-lanterns, jack-in-the-boxes and candy for a decent amount of bells.

Halloween is probably the hardest of the three holiday item events. It's very time consuming and most people are busy tricker treating, going to parties, etc for most of the night they don't have very much time to play. 

Spooky Furniture: 10,310 Bell Sale Value
Spooky Bed
Spooky Bookcase
Spooky Chair
Spooky Clock
Spooky Dresser
Spooky Lamp
Spooky Sofa
Spooky Table
Spooky Vanity
Spooky Wardrobe
Spooky Wall
Spooky Carpet

Other Halloween Items:
Jack-in-the-Box (1031 bells)
Jack-o'-Lantern (Not for Sale?)
Patched Shirt (Not for Sale)