On October 1, the Sandhill Bicycle Store had an inventory of 23 ten speed bicycles...
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On October 1, the Sandhill Bicycle Store had an inventory of 23 ten speed bicycles at a cost of $158 each. During the month of October, the following transactions occurred. Assume Sandhill uses a perpetual inventory system. Oct 4 Purchased 182 bicycles at a cost of $150 each from the Nixon Bicycle Company, terms 2/10,n/30. 5 Paid freight of $1,000 on the October 4 purchase. 6 Sold 13 bicycles from the October 1 inventory to Team America for $340 each, terms 2/10,n/30. 7 Received credit from the Nixon Bicycle Company for the return of 10 defective bicycles. 13 Issued a credit memo to Team America for the return of a defective bicycle. 14 Paid Nixon Bicycle Company in full, less discount. Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to decimal places, e.g. 2,520. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Oct. 4 Oct Oct. 4 (To record credit sale) Oct. 6 (To record cost of good sold) Oct. 7 Oct. 7 (To record credit granted for returned goods) Oct 13 (To record cost of good returned) Oct 14
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