On October 1 , Benji's Bicycle Store had an inventory of 20 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 cost of $200 each from Monroe Bicycle Company, terms 1/10,n/30 6 Sold 25 bicycles to Team Wisconsin for $330 each, terms 2/10,n/30 . 7 Received credit from Monroe Bicycle Company for the return of 2 defective bicycles. 13 Issued a credit memo to Team Wisconsin for the return of a defective bicycle. 14 Paid Monroe Bicycle Company in full, less discount. Nov. 2 Received cash for remainder owed from Team Wisconsin Instructions (a) What is the ending inventory on October 31 ? (b) What is the cost of goods sold on October 31 ? (c) What is gross profit for the month of October? (d) [Not Required] Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.
On October 1 , Benji's Bicycle Store had an inventory of 20 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 cost of $200 each from Monroe Bicycle Company, terms 1/10,n/30 6 Sold 25 bicycles to Team Wisconsin for $330 each, terms 2/10,n/30 . 7 Received credit from Monroe Bicycle Company for the return of 2 defective bicycles. 13 Issued a credit memo to Team Wisconsin for the return of a defective bicycle. 14 Paid Monroe Bicycle Company in full, less discount. Nov. 2 Received cash for remainder owed from Team Wisconsin Instructions (a) What is the ending inventory on October 31 ? (b) What is the cost of goods sold on October 31 ? (c) What is gross profit for the month of October? (d) [Not Required] Prepare the
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