California Cycles started August with 12 bicycles that cost $42 each. On August 16, California purchased 40 bicycles at $68 each. On August 31, California sold 20 bicycles for $106 each. Requirements 1. Prepare California Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that California sold 10 bicycles that cost $42 each and 10 bicycles that cost $68 each. 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account.

California Cycles started August with 12 bicycles that cost $42 each. On August 16 , California purchased 40 bicycles at $68 each. On August 31, California sold 20 bicycles for $106 each. Requirements 1. Prepare California Cycle's perpetual inventory record assuming the company uses the specific identification inventory costing method. Assume that California sold 10 bicycles that cost $42 each and 10 bicycles that cost $68 each. 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account