Innovation Cycles started January with 15 bicydes that cost $75 each. On January t10, nnovation bought 25 bicydes at S01 each On January 31, rnovation sold 23 ticyclen tor s each Requirements 1. Prepare Innovation Cycle's perpetual inventory record assuming the company uses the FIFO inventory costig method Joumalice the January 16 purchase of merchandse inventory on account and the Jaary 31 sale of mercharidoe inventory on acoount. 2. Requirement 1. Prepare Innovation Cycle's perpotual inventory record assuming the company uses the Firo nvertory costing mehod. Start by ontering the beginning invertory baances. Enter the tranactiona in chvonclogical order, caloating new vontory on hand belares aher each traaton Once all of the tranation have ben ent into the perpotual record, calculate the quantity and total cost of ventory purchased, scid, and on hand at the ond of the penod. (Enter the oldest mventory layers trat Atbeiation ined OTY Quartity. To Tolal) Innovation Cycles Inventory on Hand QTY Unit Cost Tot. Cost Purchases Cost of Goods Sold Date QTY Unit Cost Tot Cost QTY Unit Cost Tot. Cost Jan 1 Jan 16 Jan. 31 Totals Requirement 2. Joumalize the January 10 purchase of merchandise inventory on acoount and the Jarary 31 sale of merchandise inventory on account. (Recond debits frst, then credts Select he eplanatio on the last ine of the journal ertry table.) January 16 Purchased merchandise inventory on account Date Accounts and Explanation Debit Credit Jan 16 January 31: Sale of merchandise inventory on acount d in the folowing step. (Assume that Innovation sold the bicydlee for St aaa hee v y u dooun and the January 31 sale of merchandisb inventory on account January 31: Sale of merchandise inventory on account. Begin by proparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sae. We will do that in the folowing step (Asume that innovation sold the bioyces for S00 each) Date Accounts and Explanation Debit Credit Jan 31 Now journalize the expense related to the January 31 sale Review the perpetual inventory rocord you prepared in Requirement 1 Debit Credit Date Accounts and Explanation Jan 31 Now journalize the expense related to the January 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit Jan. 31