Inferring Transactions from Financial Statements Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel, and other household goods at 721 locations across the United States as well as in Canada, the United Kingdom, Japan, Australia, South Korea, Taiwan, Mexico, and Puerto Rico. As of its fiscal year-end 2016, Costco had approximately 86.7 million members. Selected fiscal-year information from the company’s balance sheets follows.

Selected Balance Sheet Data ($ millions) 2016 2015 Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,969 $8,908 Deferred membership income (liability) . . . . . . . . . . . . . . . . . . . . . . . . . 1,362 1,269

a. During fiscal 2016, Costco collected $2,739 million cash for membership fees. Use the financial statement effects template to record the cash collected for membership fees.

b. Costco recorded merchandise costs (i.e., cost of goods sold) of $102,901 million in 2016. Record this transaction in the financial statement effects template.

c. Determine the value of merchandise Costco purchased during 2016. Use the financial statement effects template to record these merchandise purchases. Assume all of Costco’s purchases are on credit.