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Question - During the month of October the following transactions occurred at Mr. Ki's Bicycle Store. Prepare the journal entries to record the transactions assuming the company uses a periodic inventory system (no explanation required).
Oct. 3 Purchased 20 bicycles at a cost of $150 each from the Lyons Bicycle Company, terms n/30.
Oct. 6 Sold 20 bicycles to Team Canada for $250 each, terms n/30.
Oct. 7 Received credit from the Lyons Bicycle Company for the return of 2 defective bicycles.
Oct. 13 Issued a credit to Team Canada for the return of one defective bicycle.
Oct. 19 Purchased 10 bicycles from Huffy Bicycle Company at a cost of $125 each, terms n/30.
Oct. 20 Paid freight of $80 on the October 19 purchase.
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