1. The journal entry to record the credit sale by Scott's Cycles, using a perpetual inventory system, is as follows:
February 1:
Debit Accounts Receivable $1,500
Credit Sales Revenue $1,500
- To record the credit sales, terms 2/15, n/30.
Debit Cost of goods sold $975
Credit Inventory $975
- To record the cost of goods sold.
2. The journal entry to record the collection of the account by Scott's Cycles is as follows:
February 9:
Debit Cash $1,470
Debit Cash Discounts $30
Credit Accounts Receivable $1,500
- To record the collection of the account and cash discounts allowed.
3. The journal entry to record the collection of the account by Scott's Cycles is as follows:
March 2:
Debit Cash $1,500
Credit Accounts Receivable $1,500
- To record the collection of the account.
2. The journal entry to record purchase on account by Scott's Cycles is as follows:
March 4:
Debit Inventory $9,000
Credit Accounts Payable $9,000
- To record the purchase of bicycles and accessories, terms 3/10, n/30.
<h3>What are the journal entries?</h3>
Journal entries are the accounting records kept by an entity about its daily transactions.
Journal entries identify the accounts involved in each transaction and whether they will be debited or credited.
Learn more about recording journal entries at brainly.com/question/17201601
