1. Make summary journal entries to record the store's transactions for the year ended February 28, 2020. Best Buy uses a perpetual inventory system. 2. Prepare a T-account to show the activity in the Inventory account. 3. Prepare the store's income statement for the year ended February 28, 2020. Show totals for gross profit, income before tax, and net income. 4. Compute the gross profit percentage. How does this compare with last year's gross profit percentage of 37%? What are some possible reasons for the change? $ 1.888,000 April (32,000 units @ cost of $59) August (52,000 units @ cost of $63) 3.276.000 4.278.000 November (62,000 units @ cost of $69) Total purchases $ 9.442.000 Best Buy purchases merchandise inventory by the crate; each crate of inventory is a unit. The fiscal year of Best Buy ends each February 28. Assume you are dealing with a single Best Buy store in Victoria, British Columbia, and that the store experienced the following: The store began fiscal year 2020 with an inventory of 18,000 units that cost a total of $900,000. During the year, the store purchased merchandise on account as follows: E (Click the icon to view the purchases.) Cash payments on account totalled $9,042,000. During fiscal year 2020, the store sold 154,000 units of merchandise for $14,784,000. Cash accounted for $5,400,000 of this, and the balance was on account Best Buy uses the FIFO method for inventories Operating expenses for the year were $2,000,000. The store paid 80% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%. Requirements Requirement 1. Make summary journal entries to record the store's transactions for the year ended February 28, 2020. Best Buy uses a perpetual inventory system Let's start with the entry to record the purchases. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Feb 28 Accounts Payable Accounts Receivable Accrued Liabilities Cash Cost of Goods Sold Income Tax Expense