Golden Cycles started August with 12 bicycles that cost $42 each. On August 16, Golden purchased 40 bicycles at $68 each. On August 31, Golden sold 36 bicycles for $84 each.

Requirements 

1. Prepare Golden Cycles’ perpetual inventory record assuming the company uses the FIFO inventory costing method. 

2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account.