Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, Montana sold 33 bicycles for $105 each.
Requirements
1. Prepare Montana Cycle’s perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Montana sold 20 bicycles that cost $36 each and 13 bicycles that cost $60 each.
2. Journalize the July 16 purchase of merchandise inventory on account and the July 31 sale of merchandise inventory on account.