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.

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Definitions:

Taboo

Social or cultural prohibitions against certain practices, topics, or words deemed unacceptable or offensive by a community or society.

Folkway

Socially accepted norms or patterns of behavior that, while not moral imperatives or laws, guide everyday interactions and practices within a culture.

Sanction

A threatened penalty for disobeying a law or rule, or an official approval or endorsement of an action.

Informal Norm

Unwritten and unofficial rules and behaviors that are understood and followed by members of a society without formal instruction.