Washington Cycles started January with 12 bicycles that cost $42 each. On January 16, Washington purchased 40 bicycles at $68 each. On January 31, Washington sold 28 bicycles for $110 each. Requirements 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. 2. Joumalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. Requirement 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating 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. (Abbreviation used: QTY = Quantity: Tot. = Total) Washington Cycles Purchases Date QTY JUnit Cost Tot. Cost Cost of Goods Sold QTY JUnit Cost Tot, Cost Inventory on Hand QTY Unit Cost Tot. Cost Jan. 1 Jan. 16 Jan. 31 Totals Requirement 2. Joumalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table. January 16: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit Jari 16 ill Next Washington Cycles started January with 12 bicycles that cost $42 each. On January 16, Washington purchased 40 bicycles at $68 each. On January 31, Washington sold 28 bicycles for $110 each. Requirements 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. 2. Joumalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. Requirement 2. Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. (Record debits first, thon credits. Select the explanation on the last line of the journal entry table.) January 18: Purchased merchandise inventory on account. Date Accounts and Explanation Debit Credit Jan 16 January 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 Washington sold the bicycles for S110 each.) Date Accounts and Explanation Debit Credit Jan 31 Now inumalize the expense related to the January 31 sale Next Washington Cycles started January with 12 bicycles that cost $42 each. On January 16, Washington purchased 40 bicycles at $68 each. On January 31, Washington sold 28 bicycles for $110 each. Requirements 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. 2. Joumalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. January 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. (Assure that Washington sold the bicycles for S110 each.) Date Accounts and Explanation Debit Credit Jan 31 Now joumalize the expense related to the January 31 sale. Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Credit Jan 31 Next