This Question: 5 pts 18 of 20 (15 complete) Boston Cycles started July with 25 b

Question

This Question: 5 pts 18 of 20 (15 complete) Boston Cycles started July with 25 bicycles that cost S 5 each. On July 10. Boston bought 50 bicycles at $80 each on July 31, Boston gold 40 bicycles for S 110 each Prepare Boston Cycle's perpetual inventory record assuming the company uses the FIFO inventory costing method Joumalize the July 16 purchase of merchandise inventory on account and the July 31 sale of merchandise inventory on account 2. Requirement 1. Prepare Boston Cycle's perpetual inventory reccord assuming the company uses the FIFO inventory costing method tart by enterr g the beginning inventory balances. ter the ransacc ons n chronological order. Calo Inng ncw nventory on h2 d balances 2ter cach transaction. Once all o the transaotons have been entered into tne pe pat al eoord oala late the quantity and total cost o inventor purchased, sold, and on hand at the end of the period. (Enter te oldest inventory laye first. Abbreviation Leed: QTY Quantity; Tot: Total) Boston Cycles Inventory on Iland QTY Unit Cost Tot Cost QTY Unit Cost Tot. Cost QTY Unit Cost Tot Cost 16 31 Requirement 2. Journalize the July 10 ourchase of merchandise inventory on account and the July 31 sale of merchandise inwentory on account (Record debits first, then eredits, Select the explanation on the last line of the joumal entry table) July 18: Purchased merchandise inventory on account Date Accounts and Explanation Jul. July 31: Sale of merchandise inventory on account Begin by prepering the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do thst in the following step. (Assume that Boston sold the bicycles for $110 each) Date Accounts and Explanation Choose from any list or enter any number in the input fields and then continue fo the next question

Explanation / Answer

A)Opening inventory on 1 july

Inventory on 1 july i.e. opening inventory qty 40 unit cost $65 total cost $2600

Purchase on 15 july

Qty 50 units price $80 total cost $4000

Closing on 15 july

Qty 90 units price $ 73.33 total cost $6600

Sale on 31 july

Qty 40 unit price $65 total cost 2600

Closing stock on 31 july

Qty 50 unit price $80 total cost $4000

B) Purchase a/c (bicycle) $4000

To creditor $4000

(Being bicycle purchases made)

3) debtor a/c dr. $4400

To sales a/c $4400

( being sales made of bicycle)

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