Lowe's is the second-largest home improvement retailer in the world with 1,754 stores. During its fiscal year ended in 2013, Lowe's purchased merchandise inventory at a cost of $ 33,439 $ millions). Assume Lowe's Companies (LOW) that all purchases were made on account and that accounts payable is only used for inventory purchases. The following T-accounts reflect information contained in the company's 2013 and 2012 balance sheets.

a. Use the financial statement effects template to record Lowe's purchases during fiscal 2013.

b. What amount did Lowe's pay in cash to its suppliers during fiscal-year 2013? Explain.

c. Use the financial statement effects template to record cost of goods sold for its fiscal year ended in 2013.

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Merchandise Inventories 2012 Bal. 8,355 2013 Bal. 8,600 Accounts Payable 4,352 2012 Bal. 4,657 2013 Bal.