Take Test Midterm Exam-ACC2100 20192 20854 estion Completion Status On October 1
ID: 2400762 • Letter: T
Question
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 4Explanation / Answer
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
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