On October 1, Keiler Motorcycle Shop had an inventory of 20 dirt bikes at a cost of
Question:
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:
Oct. 3 Purchased 10 bikes at a cost of $ 1,150 each from Lyons Bike Company, terms n/30.
6 Sold 10 bikes for $ 1,500 each, terms n/30.
6 The appropriate company paid freight of $ 250 on the October 6 sale was FOB shipping point.
7 Received credit from Lyons Bike Company for the return of 2 defective bikes.
19 Purchased 8 bikes from Huffy Cycle Company at a cost of $ 1,125 each, terms 2/10, n/30.
20 Freight of $ 220 on the October 19 purchase was FOB shipping point and paid by the appropriate company.
29 Paid for the October 19 purchase.
Instructions
Using a perpetual inventory system, prepare the journal entries to record the transactions.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill