4 On October 1, Taylor Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $200 each. During the month of October, the following transactions occurred. Oct. Purchased 20 bicycles at a cost of $200 each from Kuhn Bicycle Company, terms 2/10, n/30. 6 Sold 10 bicycles to Team America for $300 each, terma 2/10, n/30. 7 Received credit from Kuhn Bicycle Company for the return of 2 defective bicycles. 13 Issued a credit memo to Team America for the return of a defective bicycle. 14 Paid Kuhn Bicycle Company in fuli, less discount. INSTRUCTIONS Prepare the journal entries to record the transactions, assuming the company uses a perpetual inventory system. The following information is available for Senly Company: Debit Credit $ 50,000 $ 42,000 490,000 Sealy, Capita: Sealy. Drawing Divs Sales Sales Returns and Allowances Sales Discounts Cost of Goods Sold Freight-out Advertising Expense Interest Expense Store Salaries Expense Utilities Expense Depreciation Expense Interest Revenue 20,000 7,000 327,000 2,000 15,000 19,000 45,000 18,000 7,000 25,000 INSTRUCTIONS Using the above information, prepare the closing entries for Sealy Company