Reference no: EM132896888

Question - On October 1, Taylor Bicycle Store had an inventory of 10 ten speed bicycles at a cost of $200 each. During the month of October, the following transactions occurred:

Oct. 4 Purchased 40 bicycles at a total cost of $8,000 from Mann Bicycle Company, terms 2/10, n/30.

Oct. 6 Sold 18 bicycles to Team America for $5,400, terms 1/10, n/30. The cost of the bicycles was $3,600.

Oct. 8 Received a $600 credit from Mann Bicycle Company for the return of 3 defective bicycles.

Oct. 13 Issued a $600 credit memo to Team America for the return of two bicycles. The bicycles are in usable condition and will be returned to stock. The cost of the returned bicycles is $400.

Oct. 14 Paid Mann Bicycle Company the total amount owed after the return and any discount allowed.

Oct. 15 Sold 10 bicycles to Cyclists of Ohio for $3,000, terms 2/10, n/30. The cost of the bicycles was $2,000.

Oct. 25 Received payment in full, less any applicable discount, from Cyclists of Ohio.

Oct. 29 Received payment in full, less any applicable discount, from Team America.

With this information, what would the following look like?

-Journal entries, assuming that the company uses a perpetual inventory system

-With a T account, Taylor's Inventory balance at the beginning of October and the October transactions that affect this account.