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Washington Cycles started January with 25 bicycles that cost $65 each. On January 16, Washington purchased 50 bicycles at $80 each. On January 31, Washington

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Washington Cycles started January with 25 bicycles that cost $65 each. On January 16, Washington purchased 50 bicycles at $80 each. On January 31, Washington sold 33 bicycles for $97 each. Requirements 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method. 2. Journalize 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 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) Washington Cycles Purchases Cost of Goods Sold Inventory on Hand QTY Unit Cost Tot. Cost Date QTY Unit Cost Tot. Cost QTY Unit Cost Tot. Cost Jan 1 Jan. 16 Jan. 31 Totals Requirement 2 Joumotze the January 16 purchase of merchandise Inventory on account and the January 31 sale of merchandise inventory on account Record debitudine, then credit. Select the explanation on the last January 16: Purchased merchandisinventory on account Date Accounts and Explanation Jan 10 Debit Credit January 31: Sale of merchandise inventory on account Begin by preparing the entry to jumalize the portion of the transaction. Do not record the expense related to these we will do that in the following sepuhat Washington old the best for to Date Accounts and Explanation Debit Credit 31 Now journalize 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

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