Bedrock Wholesale (BW)s first months transactions are given below. Answer the question that follows each one. October 1 Purchased inventory from Fred Inc. for $25,000, FOB destination, terms 2/10 N/30. How will BW record the October 1 transaction? (1 point) increase both Purchases and Inventory Expense increase both Accounts Payable and Inventory Expense increase both Accounts payable and Purchases increase both Accounts Payable and Inventory increase both Purchases and Inventory October 2 The appropriate company paid $100 freight on the October 1 purchase. How will BW record the October 2 transaction? (1 point) no entry required increase both Inventory and Freight Expense increase both Freight Expense and Accounts Payable increase Freight Expense and decrease Cash increase both Inventory and Accounts Payable October 6 Returned $3,000 worth of goods to Fred, as they were the wrong colour. How will BW record the October 3 transaction? (1 point) decrease Accounts Payable and increase Purchase Returns decrease both Accounts Payable and inventory decrease both Accounts Payable and Inventory Expense decrease both Purchases and Inventory Expense decrease Inventory and increase Purchase Returns October 7 Sold half of the remaining inventory that was purchased from Fred, to Wilma Inc. for $16,000, FOB destination, terms 2/20 N/30. How will BW record the October 7 transaction? (1 point) increase Cost of Goods Sold and decrease Inventory by $11,000 each Increase Sales and Accounts Receivable by $11,000 each, and increase Cost of Goods Sold and decrease Inventory by $16,000 each Increase Sales and Accounts Receivable by $16,000 each, and increase Cost of Goods Sold and decrease Inventory by $11,000 each Increase Sales and Accounts Receivable by $16,000 each, and increase Cost of Goods Sold and decrease Inventory by $16,000 each Increase Sales and Accounts Receivable by $16,000 each October 8 The appropriate company paid $450 freight on the October 7 sale. How will BW record the October 8 transaction? (1 point) increase both Accounts Payable and Cost of Goods Sold no entry required increase both Accounts Payable and Freight Expense decrease both Cash and Inventory decrease Cash and increase Freight Expense October 10 Paid Fred the entire amount owed to him. In which accounts will BW record the October 10 transaction? (1 point) decrease Cash and Inventory, and increase Accounts payable decrease Cash and Accounts payable only decrease Cash and increase both Inventory and Accounts Payable decrease Cash, Inventory, and Accounts Payable decrease Cash and Accounts Payable, and increase Inventory How much does BW pay Fred on October 10? (2 points) Answer October 12 - Purchased inventory worth $15,000 from Barney Inc., FOB shipping point, terms 3/15 N/45. How will BW record the October 12 transaction? (1 point) increase both Accounts Payable and Purchases increase both Purchases and Inventory increase both Purchases and Inventory Expense increase both Accounts Payable and Inventory Expense increase both Accounts Payable and Inventory October 13 - The appropriate company paid $225 freight on the October 12 purchase. How will BW record the October 13 transaction? (1 point) increase Inventory and decrease Cash increase both Freight Expense and Accounts Payable increase both Inventory and Freight Expense no entry required increase both Inventory and Accounts Payable increase Freight Expense and decrease Cash October 17 - Sold half of the inventory purchased from Barney to Betty Ltd. for $10,000, FOB shipping point, terms 1/10 N/20. How will BW record the October 17 transaction? (1 point) increase Cost of Goods Sold and decrease Inventory by $7,500 each Increase Sales and Accounts Receivable by $10,000 each, and increase Cost of Goods Sold and decrease Inventory by $10,000 each Increase Sales and Accounts Receivable by $10,000 each Increase Sales and Accounts Receivable by $7,500 each, and increase Cost of Goods Sold and decrease Inventory by $10,000 each Increase Sales and Accounts Receivable by $10,000 each, and increase Cost of Goods Sold and decrease Inventory by $7,500 each October 18 The appropriate company paid $80 freight on the October 17 sale. How will BW record the October 18 transaction? (1 point) increase both Accounts Payable and Cost of Goods Sold increase both Accounts Payable and Freight Expense decrease Cash and increase Freight Expense no entry required decrease both Cash and Inventory October 22 - Betty returned $3,000 worth of the goods she bought on October 17, as you shipped her the wrong size. How will BW record the October 22 transaction? (1 point) Increase Inventory and decrease Cost of Goods Sold by $2,250 each, and decrease Accounts Receivable and increase Sales Returns by $2,250 each Increase Inventory and decrease Cost of Goods Sold by $3,000 each, and decrease Accounts Receivable and increase Sales Returns by $3,000 each Increase Inventory and decrease Cost of Goods Sold by $2,250 each, and decrease Accounts Receivable and increase Sales Returns by $3,000 each Decrease Accounts Receivable and increase Sales Returns by $3,000 each Increase Inventory and decrease Cost of Goods Sold by $2,250 each October 25 Betty paid her outstanding balance. In which accounts will BW record the October 25 transaction? (1 point) Increase Cash and decrease Accounts Receivable only Increase Cash and decrease Sales Discounts (increasing net sales), and decrease Accounts Receivable Increase Cash and decrease both Sales and Accounts Receivable Increase both Cash and Sales, and decrease Accounts Receivable Increase Cash and Sales Discounts (reducing net sales), and decrease Accounts Receivable How much does Betty pay BW on October 25? (2 points) Answer October 30 Wilma paid her outstanding balance. In which accounts will BW record the October 30 transaction? (1 point) Increase both Cash and Sales, and decrease Accounts Receivable Increase Cash and decrease both Sales and Accounts Receivable Increase both Cash and Sales, and decrease Accounts Receivable Increase Cash and decrease both Sales and Accounts Receivable Increase Cash and decrease Accounts Receivable only How much does Wilma pay BW on October 30? (2 points) Answer October 31 Paid Barney the entire amount owed to him. In which accounts will BW record the October 30 transaction? (1 point) Decrease Cash and Inventory, and increase Accounts Payable Decrease Cash, Inventory, and Accounts Payable Decrease Cash and Accounts Payable, and increase Inventory Decrease Cash and increase both Inventory and Accounts Payable Decrease Cash and Accounts Payable only How much does BW pay Barney on October 31? (2 points) Answer