Bike World. Inc, a line of custom road bikes. Bike World's invenorty, as of November 30, 2014 consisted of 22 mountain bikes costing $1,650 each. Bike World's trial balance as of November 30 appears as follows:

During the month of December 2014 Bike World, Inc. had the following transactions:

Dec. 4 Purchased 10 bikes for $1575 each from Truspoke Bicycle Co on account. Terms 2/15, n/45, FOB Destination

Dec. 6 Sold 14 bikes for $2100 each on account to Allsport Inc Terms 3/10, n/30 FOB Destination

Dec. 8 Paid $375 freight charges to deliver goods to Allsport, Inc

Dec. 10 Received $7200 from Cyclemart as payment on a November 17 sale. Terms were n/30

Dec. 12 Purchased $450 of supplies on account from Office Express terms 2/10, n/30 FOB Destination

Dec. 14 Received payment in full from Allsport Ince for the Dec 6 sale.

Dec. 16 Purcahsed 15 bikes for $1600 each from Truspoke Bicycle Co on account Terms 2/15, n/45 FOB Destination

Dec. 18 Paid Truspoke Bicycle Co the amount due from the Dec 4 purchase in full

Dec. 19 Sold 18 bikes for $2125 each on accont to Columbia Cycle Inc T4erms 2/15, n/45 FOB Shipping Point

Dec. 20 Paid for supplies purchased on December 12

Dec. 22 Paid sales commissions $1850

Dec. 30 Paid current months rent $500

Requirements

1. Using the transactions previously listed, prepare a perpetual inventory record for Bike World Inc for the month of Decemeber. Bike World Inc uses the FIFO inventory cost method. (Bike World records inventory in the perpetual inventory record net of any discounts as it is company policy to take advantage of all purchase discounts)

2. Open four-column general ledger accounts and enter the balances from the November 30 trial balance.