Carmax, Inc $($ticker: KMX$)$

RWP$3-4$ Visit

www$.$sec$.$gov$/$edgar and search for the Carmax annual report $(10-$K$)$ for the year

ended February $29,2020,$ using EDGAR $($Electronic Data Gathering, Analysis, and Retrieval

system$).$ Locate its balance sheet and income statement. Use this information to answer the

questions below.

Required:

In the income statement, find total cost of goods sold $($labeled "Total cost of sales"$)$ and use it

to record the journal entry for cost of goods sold.

In the balance sheet, find the amounts reported for ending inventory in the current year and the

previous year. Create a T$-$account for inventory and input the beginning and ending balances for

the current year. Use the previous year's ending balance as the current year's beginning balance

Using these balances and your answer in Requirement $1,$ solve for the missing value in the

Inventory T$-$Account$-$this amount represents inventory purchases in the current year.

Record the journal entry for inventory purchases, using the amount calculated from

Requirement $2$ and assuming all inventory purchases are on account.