Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 488 locations across the U.S. as well as in Canada, Mexico and Puerto Rico. As of its fiscal year-end 2007, Costco had approximately 50 million members. Selected fiscal-year information from the company's balance sheets follows ( \(\$\) thousands).

a. During fiscal 2007, Costco collected \(\$ 1,204,324\) cash for membership fees. Use the financial statement effects template to record the cash collected for membership fees

b. Calculate the membership fee revenue that Costco recognized during the year. Use the financial statement effects template to record this revenue.
c. Costco recorded merchandise costs (that is, cost of goods sold) of \(\$ 56,449,702\) in 2007 . Record this transaction in the financial statements effects template.
d. Determine the value of merchandise that Costco purchased during fiscal-year 2007. Use the financial statement effects template to record these merchandise purchases. Assume all of Costco's purchases are on credit.

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Selected Balance Sheet Data 2007 Merchandise inventories. $4,879,465 Deferred membership income (liability) 692,176 2006 $4,561,232 583,946