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Good Buy Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Good Buy ends each
Good Buy Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Good Buy ends each January 31. Assume you are dealing with a single Good Buy store in Dallas, Texas. The Dallas store began the year with an inventory of 23,000 units that cost a total of $1,219,000. During the year, the store purchased merchandise on account as follows: (Click the icon to view the purchases.) Cash payments on account totaled $8,082,000. During fiscal year 2021, the store sold 145,000 units of merchandise for $14,862,500, of which $4,800,000 was for cash and the balance was on account. Good Buy and all of its stores use the average-cost method for inventories. The Dallas store's operating expenses for the year were $4,000,000. It paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income, tax at the rate of 40% Read the requirements
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