Innovation Cycles started July with 12 biodes that cost $12 each. On July 16, Innovation purchased 40 bicycles at $60 each. On July 31, Innovation sold 25 bicycles for $85 each Requirements 1. Prepare Innovation des perpetual inventory record assuming the company uses the FIFO inventory costing method. 2. Joumalize the July 15 purchase of merchandise inventory on account and the Jy 31 sale of merchandise inventory on account Requirement 1. Prepare Innovation Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. Start by entering the beginning inventory balance. Enter the transactions in chronological order, calculating new inventory on hand balance ter each transaction Once all of the transactions have been entered into the perpetual record calculate the quantity and total cost of inventory purchased, old, and on hand at the end of the period. (Enter the oldest inventory layers first. Abbreviation used QTY. Quantity: Tot. - Total) Innovation Cycles Purchase Cost of Goods Sold Inventory on Hand Date QTY Un Control Cost QTY Unit Cost Tot. Cost QTY Un Cost Tot.com Ju. 1 Jul 10 Jul 31 Choose from any list or enter any number in the input fields and then continue to the next question 2 Requirement 2. Journalize the July 16 purchase of merchandise inventory on account and the July 31 sale of merchandise inventory on account. Record debits first, then credits. Select the explanation on the last line of the journal entry table) July 16: Purchased merchandise inventory on account. Dute Accounts and Explanation Debit Credit Jul 16 July 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 Innovation sold the bicycles for $95 each.) Accounts and explanation Credit Jul Date Debat 31 Now journalize the expense related to the July 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit Jul. 31