Boston Cycles started May with 15 bicyles that cost $54 each . On May 16, Boston bought 30 bicyles at $78 each. On May 31, Boston sold 21 bicycles for $90 each. Requirements: Prepare Boston Cycle perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that Bostonsold 5 bicycles that cost $54 each and 16 bicycles that cost $78 each.

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