On October 1, the Kile Bicycle Store Had an Inventory

question 98

Essay

On October 1, the Kile Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $150 each. During the month of October the following transactions occurred. Assume Kile uses a perpetual inventory system.
Oct. 4 Purchased 180 bicycles at a cost of $145 each from the Nixon Bicycle Company, terms 2/10, n/30.
5 Paid freight of $1,000 on the October 4 purchase.
6 Sold 10 bicycles from the October 1 inventory to Team America for $250 each, terms 2/10, n/30.
7 Received credit from the Nixon Bicycle Company for the return of 8 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.
Instructions
Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.

---

Definitions:

Scientific Methods

Systematic processes for experimentation and observation used to gather empirical evidence and establish or validate theories and principles.

Possible Selves

Cognitive representations of the kind of people we think we might become some day.

Construe the World

To construe the world means to interpret or understand the world and the events within it through a personal or theoretical lens.

Personal Constructs

Theoretical constructs proposed by George Kelly, suggesting that people develop personal systems of belief that they use to understand and interpret the world around them.