Question 1: Perpetual Inventory: Journal Entries

On October 1, Keiler Motorcycle Shop had an inventory of 20 dirt bikes at a cost of $1,150 each. During the month of October, the following transactions occurred. Purchased 10 bikes at a cost of $1,150 each from the Lyons Bike Company, terms 1/15, n/30. Oct.3 6 Sold 10 bikes for $1,500 each, terms n/30. 6 Freight of $250 on the October 6 sale was FOB shipping point. 7 Received credit from the Lyons Bike Company for the return of 2 defective bikes. 10 Paid Lyons Bike Company for the October 3 purchase, net of the return. 13 Issued a credit to a customer for the return of a defective bike 19 Purchased 8 bikes from Huffy Cycle Company at a cost of $1,025 each, terms n/30. Received a 5% volume discount. Freight of $180 on the October 19 purchase was FOB shipping point. Returned 2 of the bikes purchased from Huffy Cycle Company as they were not the right 20 23 color Nov. 22 Paid for the October 19 purchase