thnovation Cycles started Odober with 12 bicydes that cost $42 each On October 16 , lnnovation purchased 40 bicycles at $66 each. On October 31 , Innovation sold 27 bicycles for $93 asch. Requirements 1. Prepare Innovation Cycle's perpetual inventory record attuming the compary uses the FIFO invantory costing method. 2. Joumalize the October 16 purchase of merchandise inventory on acoount and the October 31 sale of merchandise inventory on account. Aequirement 1. Prepare innovation Cycle's perpetual inventory record assuming the compary uses the FIFO irvantory costing method. Start by entering the beginning inventory belances. Enter the transactors in chronological order, calculating new inventory on hand balances affer each transacton. Once all of the transactions havn been entered into the perpetyal record, calcylate the quantity and total cost of invartory purchased, sold, and on hand at the end of the period. (Erter the oldest inventiory layers frat. Abbrovation. used: QTY = Ouantity, Tot. = Total Requirement 2. Journaize the October 16 purchase of merchandise inventory on account and the Oclober 31 swle of merchandise inventory on account. (Record debils int then credes. Select is explanation on the last line of the joumal entry table.) October 16: Purchased merchandise inventory on account. October 31: Sale of merchandise inventory on account. Begin by preparing the entry to journalize the sale portion of the transaction. Do not recond the expense related bo the sale. We will bo that in the following step. (Aasume that In tovation acld the bicycles for 598 each. Now journalize the expense related to the October 31 sale. Review the perpetual inventory record you prepared in Requirement 1