Best Guy purchases merchandise inventory by the crate; each crate of inventory is a unit. The fiscal year of Best Guy ends each February 28. Assume you are dealing with a single Best Guy store in Halifax, Nova Scotia, and that the store experienced the following: The store began fiscal year 2017 with an inventory of 22,000 units that cost a total of $1,100,000. During the year, the store purchased merchandise on account as follows: H: (Click the icon to view the purchases.) Cash payments on account totalled $7874,000. During fiscal year 2017, the store sold 150,000 units of merchandise for $14.400,000. Cash accounted for $5,100,000 of this, and the balance was on account. Best Guy uses the FIFO method for inventories. Operating expenses for the year were $3,250,000. 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, 2017 Best Guy 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 ccounted for $5,100,000 of this, and the balance was on account. Best Guy uses the FIFO Hora 060 000 The stars said 00/ in cash and con Requirements 1. Make summary journal entries to record the store's transactions for the year ended February 28, 2017. Best Guy uses a perpetual inventory system. 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, 2017 Show totals for gross profit, income before tax, and net income. Print Print Done Done 10 31,874,000. During fiscal year 2017, the store sold 150,000 units of mercha counted for $5.100.000 of this, and the balance was on account. Best Guy uses the FIFO exper the res crued i Data Table sumn tory s ruary 2 to re April (32,000 units @ cost of $51). August (52,000 units @ cost of $55). November (62,000 units @ cost of $61) Total purchases. 1,632,000 2,860,000 3,782,000 not red ..$ 8,274,000 Print Done Iwc purchases.) Cash payments on account totalled $7,874,000. During fiscal year 2017, the store sold 150,000 units of $14,400,000. Cash accounted for $5,100,000 of this, and the balance was on account. Best Guy uses th inventories. Ope liabilities. The sto The store paid 80% in cash and accrued Accounts Payable Requirements Accounts Receivable Accrued Liabilities Requirement 1. Cash ore's transactions for the year ended Febr uses a perpetual Cost of Goods Sold Let's start with th Income Tax Expense its first, then credits. Explanations are n Income Tax Payable Inventory Date Operating Expenses Debit Credit Feb 28 Sales Revenue Choose from any list or enter any number in the input fields and then click Check Answer Chec