Best Way Company purchases inventory in crates of merchandise; each crate of Inventory is a unit. The fiscal year of Best Way ends each January 31. Assume you are dealing with a single Best Way store in Dallas, Texas. The Dallas store began the year with an inventory of 13,000 units that cost a total of $689,000 During the year, the store purchased merchandise on account as follows: (Click the icon to view the purchases.) Cash payments on account totaled 57,779,000. During fiscal year 2018, the store sold 152,000 units of merchandise for $15,580,000, of which $5,300,000 was for cash and the balance was on account, Best Way and all of its stores use the average-cost method for inventories. The Dallas store's operating expenses for the year were $2,600,000. It paid 70% in cash and accrued the rest as accrued liabilities. The store accred Income tax at the rate of 40% Read the requirements Requirement 1. Make summary journal entries to record the store's transactions for the your ended January 31, 2018. Best Way and all of its storos uso a perpetual Inventory system. Round average cost per unit to two decimal places and round all other amounts to the nearest dollar. (Record debits first, then credits. Exclude explanations from any loumal entries.) Let's start with the entry to record the purchases on account Journal Entry Date Accounts Debit Credit - Jan 31 Data table Jul (31,000 units at $51 Nov (51,000 units at $55) Dec (61,000 units at 561) Total purchases $ 1.581,000 2,805,000 3,721.000 Next, record the cash payments on account for $7.779,000 Journal Entry $ 8.107.000 Date Accounts Debit Credit Jan 31 Print Done Now record the sale of merchandise for $15,580,000, of which $5,300,000 was for cash and the balance was on account. (Do not record the cost related to the sale We will do this in the next joumal entry) Journal Entry Accounts Credit Debit Date Jan 31 Record the cost related to the sale of merchandise (Round unit costs to the nearest cent. Round your answer to the nearest whole dollar) Journal Entry Accounts Debit Credit Date Jan 31 Now record the $2,600,000 operating expenses for the year. Best Way paid 70% in cash and accrued the most an accrued hinbiten. (Round your fint onwers to the nearest whole dollar Journal Entry Date Accounts Debit Credit Jan 31 Finally, record the entry to accrue income tax. (Round your final answers to the nearest whole dollar) Journal Entry Accounts Date Debit Credit Jan 31 Requirement 2. Prepare a T-account to show the activity in the Inventory account Post the beginning balance and activity to the T-account and calculate the ending inventory balance. Abbreviations used: Beg Bal Beginning Balance, COGS - Cout of Goods Sold, End Bal - Ending Balance) Inventory Requirement 3. Prepare the store's income statement for the year ended January 31, 2018 Show totals for gross profit, income before tax and net income Best Way Store in Dallas Income Statement Year Ended January 31, 2018 Net Income (loss)