AZ Cycles started May with 15 bicycles that cost $54 each. On May 16, AZ bought 30 bicycles at $78 each. On May 31, AZ sold 29 bicycles for $106 each. Requirements 1. Prepare AZ Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that AZ sold 5 bicycles that cost $54 each and 24 bicycles that cost $78 each. 2. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. Requirement 1. Prepare AZ Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that AZ sold 5 bicycles that cost $54 each and 24 bicycles that cost $78 each. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used: QTY = Quantity; Tot. = Total) AZ Cycles Purchases Cost of Goods Sold Inventory on Hand Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost May 1 May 16 May 31 Totals Requirement 2. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.) May 16: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit May 16 May 31: Sale of merchandise inventory on account. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. (Assume that AZ sold the bicycles for $106 each.) Date Accounts and Explanation Debit Credit May 31 Now journalize the expense related to the May 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit May 31