Take Test Midterm ExamACC2100 20192 20854 estion Completion

Take Test Midterm Exam-ACC2100 20192 20854 estion Completion Status On October 1, the Kilk Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $150 each. During the month of October the following trassactions occurred. Assame Kile uses a perpetual Inventory system. Oct 4 Purchased 180 bicycles at acost of $145 each from the Nixon Bicycle Company, terms 2/10, n/30 5 Paid frelight of $900 on the October 4 purchase 6 Soid 10 bicycles from the October I inventory to Team America for $250 eath, terms 2/10, n/30 7 Received credit froes the Nixon Bicycle Company for the retam of 8 defective bicycles 13 Issued a credin memo to Team America for the retarn of a weong clear bicycle. 14 Paid Nixoe Bicycle Company in full, less discount. Instructions Prepare the jounal entries to record the transactions assuming the company ases a perpenual inventory system MacBook Air 138 4

Solution

Answer:

Date

Account tiltle and Description

Debit $

Credit $

4-Oct

Inventory

26100

Accounts payable

26100

(180*145)

5-Oct

Inventory

900

Cash

900

6-Oct

Account receivable (10*250)

2500

Sales revenue

2500

Cost of goods sold (10*150)

1500

Inventory

1500

7-Oct

Account receivable (8*145)

1160

Inventory

1160

13-Oct

Sales return and allowance

250

Account receivable

250

Inventory

150

Cost of goods sold

150

14-Oct

Accounts payable (24940-1160)

24940

Cash (24940-449)

24441

Inventory (24940*2%)

499

Date	Account tiltle and Description	Debit $	Credit $
4-Oct	Inventory	26100
	Accounts payable		26100
	(180*145)
5-Oct	Inventory	900
	Cash		900
6-Oct	Account receivable (10*250)	2500
	Sales revenue		2500
	Cost of goods sold (10*150)	1500
	Inventory		1500
7-Oct	Account receivable (8*145)	1160
	Inventory		1160
13-Oct	Sales return and allowance	250
	Account receivable		250
	Inventory	150
	Cost of goods sold		150
14-Oct	Accounts payable (24940-1160)	24940
	Cash (24940-449)		24441
	Inventory (24940*2%)		499