Hudson Cycles started May with 5 bicycles that cost $48 each. On May 16, Hudson bought 30 bicycles at $55 each. On May 31, Hudson sold 13 bicycles for $95 each. Requirements Prepare Hudson Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. 2 Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. 1 Requirement 1. Prepare Hudson Cycle's perpetual inventory record assuming the company uses the weighted-average 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. (Abbreviation used: QTY = Quantity: Tot. = Total) Hudson 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 May 1 May 16 May 31 Totals Requirement 2. Journalize the May 16 purchase of merchandise inventory on account and the May 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table. Check your spelling carefully and do not abbreviate.) May 16: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit May 16 May 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 $95 each.) Date Accounts and Explanation Debit Credit May 31 Now journalize the expense related to the May 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit May 31