Preparing a perpetual inventory record and journal entriesLIFO

Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, Boston bought 40 bicycles at $68 each. On October 31, Boston sold 34 bicycles for $100 each.

Requirements

1. Prepare Boston Cycles perpetual inventory record assuming the company uses the LIFO inventory costing method.

2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account.