On October 1, the Pharoah Bicycle Store had an inventory of 27 ten speed bicycles at a cost of $159 each. During the month of October, the following transactions occurred. Assume Pharoah uses a perpetual inventory system.

Oct. 4 Purchased 197 bicycles at a cost of $150 each from the Nixon Bicycle Company, terms 2/10, n/30. 5 Paid freight of $1,000 on the October 4 purchase. 6 Sold 17 bicycles from the October 1 inventory to Team America for $260 each, terms 2/10, n/30. 7 Received credit from the Nixon Bicycle Company for the return of 25 defective bicycles. 13 Issued a credit memo to Team America for the return of a defective bicycle. 14 Paid Nixon Bicycle Company in full, less discount.

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