Shepherd Cycles started August with 12 bicycles that cost $42 each. On August 16, Shepherd bought 40 bicycles at $68 each. On August 31, Shepherd sold 29 bicycles for $110 each. Prepare Shepherd 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. August 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 Shepherd sold the bicycles for $110 each.) Now journalize the expense related to the August 31 sale. Review the perpetual inventory record you prepared in Requirement 1