Washington Cycles started October with 12 bicycles that cost $42 each. On October 16, Washington purchased 40 bicycles at $68 each. On October 31, Washington sold 31 bicycles for $96 cach. Requirements 1. Prepare Washington Cycle's perpetual inventory record assuming the company uses the weighted average inventory costing method. 2. Joumalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory an 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 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. (Abbreviation used: OTY = Quantity. Tot = Total Washington 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 Oct 1 Oct. 16 Oct 31 Totals Requirement 2. Journalize the October 16 purchase of merchandise inventory on account and the October 31 sale of merchandise inventory on account Record debits first, then credits. Select the explanation on the last line of the journal entry table) October 16: Purchased merchandise inventory on account. Accounts and Explanation Debit Credit Oct 16 Date October 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 $96 each) Date Accounts and Explanation Debit Credit Oct 31 Now journalize the expense related to the October 31 sale Review the perpetual inventory record you prepared in Requirement 1. Date Accounts and Explanation Debit Oct 31 Credit