Better Buy Company purchases inventory in crates of merchandise; each of inventory is a unit. The fiscal year of Better Buy ends each January 31. Assume you are dealing with a single Better Buy store in Nashville, Tennessee. The Nashville store began the year with an inventory of 21,000 units that cost a total of $1,113,000. During the year, the store purchased merchandise on account as follows (Click the icon to view the purchases) Cash payments on account totaled $7.111,000. During fiscal year 2021 the store sold 145,000 units of merchandise for $14.862.500 of which $5,000,000 was for cash and the balance was on account. Better Buy and all of stores use the average cost method for inventories The Nashville store's operating expenses for the year were $4,000,000 70% cash and accrued the real as accrued Sabilities. The store accrued income of its stores use a perpetual to recond the store's transactions for the year ended January 31, 2021. Better Buy and all to two decimal places and round all other amounts to the nearest dollar (Record debits at the Requirement 1. Make summary journal entries inventory system Round average cost per unit Let's start with the entry to record the purchases on account Date Journal Entry Accounts 31 as Revenue Next record the cash payments on account for $7.111.000 Journal Entry Debil Cred Exclude Next Next, record the cash payments on account for $7,111,000. Date Jan 31 Journal Entry Accounts Debit Credit Now record the sale of merchandise for $14,862,500, of which $5,000,000 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 journal entry.) Date Jan 31 Journal Entry Accounts Debit Credit 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 Next Journal Entry Date Accounts Debit Credit Jan 31 Now record the $4,000,000 operating expenses for the year. Better Buy paid 70% in cash and accrued the rest as accrued liabilities (Round your final answers 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 Date Accounts Debit Credit Next Better Buy Company purchases inventory in crates of merchandise; each crate of 1 Journal Entry Date Accounts Debit Credit Jan 31 point(s) possible Submit quiz Cash payments on account totaled $7.111,000. During fiscal year 2021, 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 Co of Goods Sold, End Bal Ending Balance)) Inventory Requirement 3. Prepare the store's income statement for the year ended January 31, 2021. Show totals for gross profit, income before tax and net income Better Buy Store in Nashville Income Statement Year Ended January 31, 2021 Next of Goods Sold, End Bal Ending Balance.) Inventory Requirement 3. Prepare the store's income statement for the year ended January 31, 2021. Show totals for gross profit, income before tax and net income Better Buy Store in Nashville Income Statement Year Ended January 31, 2021 Net income (loss) Next Jy of 21,000 units that cost a total of 000. During the year, the store purchased merchandies on account ac ck the icon to view the purchases.) Data table all of its stores use the average-cost method for inventories. The Nas etora's operation avaances for the year were $4,000,000. It paid 70% crued liabilities. The store accrued in - x voyay vary w ds Sold, End Bal Ending Balance. Inventory Jul (27,000 units at $51) Nov (47,000 units at $55) Dec (57,000 units at $61) Total purchases $ 1,377,000 2,585,000 3,477,000 by D-Daymywane, www $ 7,439,000 uirement 3. Prepare the store's incom Better Buy Store in Nashvi Income Statement Year Ended January 31, 2021 Print Done bme before tax and net income. with a single Better Buy store in Nashville, Tennessee. The began the year with an inventory of 21,000 units that cost a total of uring the year, the icon to view the p Requirements A $5,000,000 was for cash and the balance was on account. Better all of its stores use the average-cost method for inventories. The N re $4,000,000. It paid 70 ities. The store accrued - X y valai B 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2021. Better Buy and all of its stores use a perpetual inventory system. Round average cost per unit to two decimal places and round all other amounts to the nearest dollar. id, End Bal Endin 2. Inver 3. Prepare a T-account to show the activity in the Inventory account. Prepare the store's income statement for the year ended January 31, 2021. Show totals for gross profit, income before tax, and net income. ent 3. Prepare the sto Better Buy Store Print Done my wa tax and net income