On October 1, Lance's Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $350 each. During the month of October, the following transactions occurred.

Oct. 4Purchased 40 bicycles at a cost of $350 each from Lamont Bicycle Company, terms 1/10, n/30.6Sold 20 bicycles to Team Minnesota for $500 each, terms 2/10, n/30.7Received credit from Lamont Bicycle Company for the return of 2 defective bicycles.13Issued a credit memo to Team Minnesota for the return of a defective bicycle.14Paid Lamont Bicycle Company in full, less discount.