June5Sold for cash one model A0024road bike for $5,175.00plus 7% sales tax. The sales invoice for this transaction is Z1605.Merchandise listed on the sales invoice:StockNumberItemQuantityNet CostPer UnitA0024WINDOWS PEAK -DEEMA1$3,450.00Because a perpetual inventory system is used by Zacks Bike Hut, for each entry where a product is sold, an update of the specific items sold will be a part of the journal entry. After the sale entry is recorded and posted, a second journal entry will automatically be entered and posted by the program. This entry will debit (increase) the Cost of Goods Sold account and credit (decrease) theMerchandise Inventory account.Enter the journal entry for the sales transaction. Enter the invoice number and click on the Verify Documents button.The Inventory Item Number and Description column will become highlighted.Enter the stock number, tab to the Units column and enter the 1.Click on the Verify Inventory Data button.(Entry information continuedon next page.)Note: The bike being sold for $5,175.00 cost the business $3,450.00 (net). All road and mountain bikes carry a 50% markup on net cost (33 1/3% markup on selling price). The net cost ($3,450.00) plus the programmed markup of $1,725.00 = the retail selling price of $5,175.00 ($3,450 x 150%) and must matchthe credit entry to Sales or the computer program will not accept the journal entry.Upon verification of agreement, click on the Post Entrybutton. When the sale and inventory information has been entered, verified, and posted, the program will automatically journalize and post the update to the Cost of Goods Sold and the Merchandise Inventory accounts