Reference no: EM132863717

Question - 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.

Oct. 6 Sold 25 bicycles to Team Wisconsin for $330 each, terms 2/10, n/30.

Oct. 7 Received credit from Monroe Bicycle Company for the return of 2 bicycles.

Oct. 13 Issued a credit memo to Team Wisconsin for the return of a bicycle. The item is in usable condition and will be returned to stock.

Oct. 14 Paid Monroe Bicycle Company in full, less discount.

Oct. 26 Received full payment due from Team Wisconsin.

Required -

A. How would the October transactions be journalized for Benji's Bicycle Store, for the month of October?

B. What would the inventory balance at the beginning of October and the October transactions affect this account? What would the balance at the end of October be?