California Cycles started October with 16 bicycles that cost 554 each. On October 10, Califomia purchased 30 bicycles at $78 each On October 21, California sold 23 bicycles for 395 each Requirements 2 Prepare Califomia Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account Requirement 1 Prepare California 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) California Cycles Purchases Cost of Goods Sold Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Inventory on Hand Unit Cost Tot Cost Oct 1 Oct 15 Det. St Tota's Requirement 2. Journalize the October 10 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account. (Record debits first, then credits Select this explanation on the last line of the journal entry table.) October 10 Purchased merchandise inventory on account Date Accounts and Explanation Oct 16 Debit Credit October 31 Sale of marchandise inventory on account Begin by preparing the entry to journalize the sale portion of the transaction. De not record the expense related to the sale. We will do that in the following step. (Assume that California sold the bicycles for 505 each) Out Date 31 Accounts and Explanation Debit Credit California Cycles started October with 15 bicycles that cost $54 each. On October 18, California purchased 30 bicycles at $78 each. On October 31. California sold 23 bicycles for 305 each Requirements 1. 2. Prepare California Cycle's perpetual inventory record assuming the company uses the LIFO Inventory costing method Joumalize the October 10 purchase of marchandise inventory on account and the October 31 sale of merchandise inventory on account Oct 31 Totals Requirement 2 Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of marchandise 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 Dale Accounts and Explanation Oct 16] Debit Credit 4 October 31 Sae 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 California sold the bicycles for 305 each) Date Accounts and Explanation: Debit Credit 31 Now journalize the expense related to the October 31 sale Review the perpetual inventory record you prepared in Requirement Oct Date Accounts and Explanation 31 Debit Credit