On October 1, the Kile Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $150 each.

During the month of October the following transactions occurred.

Assume Kile uses a perpetual inventory system.

Oct. 4 Purchased 180 bicycles at a cost of $145 each from the Nixon Bicycle Company, terms 2/10, n/30.

5 Paid freight of $900 on the October 4 purchase.

6 Sold 10 bicycles from the October 1 inventory to Team America for $250 each, terms 2/10, n/30.

7 Received credit from the Nixon Bicycle Company for the return of 8 defective bicycles.

13 Issued a credit memo to Team America for the return of a wrong clear bicycle.

14 Paid Nixon Bicycle Company in full, less discount.

Instructions

Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.

Typing format please.