Shepherd Cycles started August with 25 bicycles that cost $65 each. On August 16, Shepherd purchased 50 bicycles at $80 each. On August 31, Shepherd sold 49 bicycles for $110 each. Requirements 1. 2. 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. Requirement 1. Prepare Shepherd Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first Abbreviation used QTY Quantity, Tot. Total)) Shepherd Cycles Purchases Cost of Goods Sold Inventory on Hand Date Aug 1 QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Aug 16 Aug 311 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account FIGHT OF DID IN (LINDI Lounyayor Mil-wwconnY, FUL Shepherd Cycles Purchases Cost of Goods Sold Inventory on Hand Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Aug. 1 Aug 16 Aug. 31 Totals Requirement 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on accou (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 2. Journalize the August 16 purchase of merchandise inventory on account and the August 31 sale of merchandise inventory on account (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) August 16: Purchased merchandise inventory on account Date Accounts and Explanation Aug 16 August 31: Sale of merchandise inventory on account. Debit Credit 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) Date Aug 31 Accounts and Explanation Debit Credit Now journalize the expense related to the August 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Aug 31 Debit Credit