Question

On October 1, Lance’s Bicycle Store had an inventory of 20 ten speed bicycles at a cost of $350 each. During the month of October, the following transactions occurred.

Purchased 40 bicycles at a cost of $350 each from Lamont Bicycle Company, terms 1/10, n/30.

6 Sold 20 bicycles to Team Minnesota for $500 each, terms 2/10, n/30.

7 Received credit from Lamont Bicycle Company for the return of 2 defective bicycles.

13 Issued a credit memo to Team Minnesota for the return of a defective bicycle.

14 Paid Lamont Bicycle Company in full, less discount.

yes journal entries

Answer 1

Lance's Bicycle Store
General Journal
Date	Journal	Amount (DR)	Amount (CR)
04-Oct	Inventory(40*$350)	$                                                                                                14,000.00
	To Accounts Payable		$                                                     5,000.00
	(Amount of merchandise inventory purchased on account from Lamont Bicycle term 1/10,n/30)
06-Oct	Accounts Receivable(20*$500)	$                                                                                                10,000.00
	To Sales Revenue		$                                                  10,000.00
	(Amount of sales to Team Minnesota term 2/10,n/30)
06-Oct	Cost of goods sold(20*$350)	$                                                                                                  7,000.00
	To Inventory		$                                                     7,000.00
	(Amount of cost of goods sold)
07-Oct	Accounts Payable(2*$350)	$                                                                                                      700.00
	To Inventory		$                                                        700.00
	(Amount of 2 bicycle returned)
13-Oct	Sales return & allowances(1*$500)	$                                                                                                      500.00
	To Accounts Receivable		$                                                        500.00
	(Being amount of sales return)
13-Oct	Inventory(1*$350)	$                                                                                                      350.00
	To Cost of goods sold		$                                                        350.00
	(Being amount of cost of goods returned)
14-Oct	Accounts Payable($14000-$700)	$                                                                                                13,300.00
	To Cash($14000-$700)*99%		$                                                  13,167.00
	To Discount		$                                                        133.00
	(Being amount paid to Lamont Bicycle after 1% discount)