Question
: JC Bikes has the following transactions during May. May 2 Purchases bikes on account from Bikers R Us Wholesale for $3,300, terms 1/10, n/30.
: JC Bikes has the following transactions during May.
May 2 | Purchases bikes on account from Bikers R Us Wholesale for $3,300, terms 1/10, n/30. |
May 3 | Pays cash for freight costs of $200 on bikes purchased from BRU. |
May 5 | Returns bikes with a cost of $400 to BRU because part of the order is incorrect. |
May 10 | Pays the full amount due to BRU. |
May 30 | Sells all Bikes purchased on May 2 (less those returned on May 5) for $4,000 on account. |
Required:
1. | Record the transactions of JC Bikes, assuming the company uses a perpetual inventory system.
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2. | Assume that payment to BRU is made on May 24 instead of May 10. Record this payment. |
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