+ Problem Two: JC Bikes has the following transactions during May. 1. Analyze and record the transactions of JC Bikes, assuming the company uses a perpetual inventory system. May 2 Purchases bikes on account from Bikers R Us Wholesale for $3,300, terms 1/10, n/30. A L SE R E NI CF Account Merchandise DR CR 3300 -OA inventory Accounts 3300 payable May 3 Pays cash for freight costs of $200 on bikes purchased from BRU. A L SE R E NI CF -OA Account Merchandise inventory Cash DR CR 200 200 May 5 Returns bikes with a cost of $400 to BRU because part of the order is incorrect. L SE R E NI May 10 Pays the full amount due to BRU. L SE CF -OA Account Accounts payable Merchandise inventory DR CR 400 400 R E NI CF Account DR CR Accounts 2900 -OA payable Cash Merchandise inventory 2871 29 May 30 Sells all Bikes purchased on May 2 (less those returned on May 5) for $4,000 on account. A L SE R E NI CF Account Accounts DR CR 4000 +FA receivable Sales Revenue 4000 2 Cost of good sold Merchandise inventory 2. Assume that payment to BRU is made on May 24 instead of May 10. Record this payment. A L SE R E NI CF -FA Account Accounts payable Cash 3071 3071 DR CR $2900 $2900