Boston Cycles started October with 12 bicycles that cost $42 each On October 16, Boston purchased 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 specific identification inventory costing method. Assume that Boston sold 10 bicycles that cost $42 each and 24 bicycles that cost $68 each 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 specific identification inventory costing method. Assume that Boston sold 10 bicycles that cost $42 each and 24 bicycles that cost $68 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) Boston Cycles Purchases Date QTY Unit Cost Tot. Cost Inventory on Hand Cost of Goods Sold 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 3 Now journalize the expense related to the October 31 sale Review the perpetual inventory record you prepared in Requirement 1. Accounts and Explanation Debit Date Credit Oct 31