Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, Boston sold 34 bicycles for $100 each. Requirements 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account. Requirement 1. Prepare Boston Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 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. (For cost of goods sold, enter the first layer out under LIFO costing first. For inventory on hand, enter the oldest inventory layer first. Abbreviation used: QTY = Quantity; Tot. = Total) Boston 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 Oct. 1 Oct. 16 Oct. 31 Totals Requirement 2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) October 16: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit Oct. 16 October 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 Boston sold the bicycles for $100 each.) Date Accounts and Explanation Debit Credit Oct. 31 Now journalize the expense related to the October 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit Oct. 31 Date Accounts and Explanation Debit Oct. 16 Accounts Payable Accounts Receivable Cost of Goods Sold Merchandise Inventory October 31: Sale Sales Revenue Begin by preparing the entry to journalize the sale portion of the transactior Date Accounts and Explanation DO -ct. 16 ctober 31: Sale To purchase inventory on account. egin by prepari To record cost of goods sold. e following ste To record sale on account. Date Accounts and explanation e transa 100 eac DO