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On October 1, the Ivanhoe Bicycle Store had an inventory of 21 electric bicycles at...

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Accounting

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On October 1, the Ivanhoe Bicycle Store had an inventory of 21 electric bicycles at a cost of $155 each. During the month of October. the following transactions occurred. Assume Ivanhoe uses a perpetual inventory system. Oct. 4 Purchased 192 bicycles at a cost of $150 each from the Ace Bicycle Company, terms 2/10,n/30. 5 Paid freight of $900 on the October 4 purchase. 6 Sold 11 bicycles from the October 1 inventory to Team America for $340 each, terms 2/10,n/30. 7 Received credit from the Ace Bicycle Company for the return of 20 defective bicycles. 13 Issued a credit memo to Team America for the return of a bicycle. 14 Paid Ace Bicycle Company in full, less discount. Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system. (Credit occount titles are outomatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round answers to 0 decimal places, es. 5,275 . Oct. 13 (To record credit granted for returned goods) (To record cost of goods returned)

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