The fact that May has two other candidate days is not relevant - Bernard can eliminate May and June together, simply upon hearing Albert's first report.
To elaborate on why/how May and June can be excluded, as the month:
Before Bernard says a word, Albert makes his first report, that Albert knows that Bernard cannot pin the month.
Bernard (having the deductive reasoning capabilities of a good Terbite) deduces how/why Albert was able to make this report.
Bernard deduces that, if Albert knew the month was May, Albert would not dare to make his first report, because, for all Albert knows, Cheryl might have whispered "19" to Bernard -- in which case Bernard would then be able to pin the month to May.
Equally, Bernard deduces that, if Albert knew that the month was June, again Albert would not dare to make his report, because, for all Albert knew, Cheryl might have whispered "18" to Bernard -- in which case Bernard would be able to pin the month to June.
Now, because Bernard hears Albert say that Bernard does not know the month, Bernard knows that the month cannot be May or June -- because if it were May or June, Albert could not be certain that Bernard did not know the month. Therefore, Bernard knows that the month must be either July or August.
So now, at this point, Albert (to whom Cheryl whispered July) knows he has to decide between 14 and 16. Similarly, Bernard (to whom Cheryl whispered 16) knows that 16 appears in both May and July. But Bernard has just eliminated May -- so July it is. So, now, Bernard is able to report that he didn't know the birthday at first, but now he does.
So Bernard now knows, simply from having heard Albert's first report, that the month is not May nor June (i.e that the month must be July or August.) May and June are equal in this regard -- both can be excluded for the same reason.
Just a comment on the assumptions that need to be made:
1) - that the facts as stated in the problem are true;
2) - that no-one has reported any relevant facts, other than as stated;
3) - that Albert and Bernard are telling the truth in their reports.
These assumptions are clearly acceptable, for the purposes of the game.
If people don't find those assumptions acceptable, they probably also wouldn't find it acceptable to assume there is oxygen in the atmosphere, and that gravity acts downwards.