Hudson Cycles started August with 15 bicycles that cost $54 each. On August 16, Hudson bought 30 bicycles at $78 each. On August 31, Hudson sold 25 bicycles for $97 each. Requirements 1. Prepare Hudson Cycle's perpetual inventory record assuming the company uses the LIFO inventory costing method. 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account. Requirement 1. Prepare Hudson 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) Hudson Cycles Purchases Cost of Goods Sold Inventory on Hand QTY Unit Cost Tot. Cost Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Aug. 1 Aug. 16 Aug. 31 Totals Requirement 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.) August 16: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit Aug. 16 August 31: Sale of merchandise inventory on account. August 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 Hudson sold the bicycles for $97 each.) Date Accounts and Explanation Debit Credit Aug. 31 Now journalize the expense related to the August 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit Aug. 31