Mountain Cycles started August with $12$ bicycles that cost $$42$ each. On August $16,$ Mountain purchased $40$ bicycles at $$68$ each. On August $31,$ Mountain sold $31$ bicycles for $$110$ each.

Requirements

Prepare Mountain Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method.

Journalize the August $16$ purchase of merchandise inventory on account and the August $31$ sale of merchandise inventory on account.

Requirement $1.$ Prepare Mountain Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method.