12. March 14: Bikes R' Us paid their balance off for the bikes they purchased. 13. March 15: Billy Bob bought a Bike Making Machine for $407,100 using $47,100 cash and then borrowing the rest from the bank. The loan will be paid off over the next 3 years (1/3 of the principal will be paid at the end of each year). The loan carries an interest rate of 8.68 percent. Interest accrued will be paid off at the end of every year. The Bike Making Machine has an expected life of 11.5 years and will be depreciated using the straight-line method. 14. March 16: Billy Bob sold 9 bikes to Biker's Bargains for $7,900 each with credit terms of 2/10 EOM, n/45. The cost of the bikes was determined to be $59,509. 15. March 16: Biker's Bargains paid FedEx $4,283 to have the bikes shipped to them. 12. March 14: Bikes R' Us paid their balance off for the bikes they purchased. 13. March 15: Billy Bob bought a Bike Making Machine for $407,100 using $47,100 cash and then borrowing the rest from the bank. The loan will be paid off over the next 3 years (1/3 of the principal will be paid at the end of each year). The loan carries an interest rate of 8.68 percent. Interest accrued will be paid off at the end of every year. The Bike Making Machine has an expected life of 11.5 years and will be depreciated using the straight-line method. 14. March 16: Billy Bob sold 9 bikes to Biker's Bargains for $7,900 each with credit terms of 2/10 EOM, n/45. The cost of the bikes was determined to be $59,509. 15. March 16: Biker's Bargains paid FedEx $4,283 to have the bikes shipped to them