Good Buy Company purchases inventory in crates of merchandise each crate of Cash payments on account totaled S9, 260,000. During fiscal year 2018 the store inventory is a unit. The fiscal year of Good Buy ends each January 31. Assume you sold 150,000 units of merchandise for $15,375,000, of which $5,000,000 was for are dealing with a single Good Buy store in Ocala, Florida The Ocala store began cash and the balance was on account. Good Buy and all of its stores use the the year with an inventory of 22.000 units that cost a total of $1.166.000 During the average cost method for inventories The Ocala store's operating expenses for the year, the store purchased merchandise on account as follows year were $3,750,000. It paid 70% in cash and accrued the rest as accrued Click the icon to view the purchases) liabilities. The store accrued income tax at the rate of 30% Read the requirements Requirement 1. Make summary journal entries to record the store's transactions for the year ended January 31 2018. Good 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 (Record debits first the credits. Exclude explanations from any journal entries.) Let's start with the entry to record the purchases on account Journal Entry Accounts Date Debit Credit Jan 31 Cuction Viewer Data Table the year with an inventory of 22,000 units that cost a total of $1,166 000. During the average-od year, the store purchased merchandise on account as follows year were (Click the icon to view the purchases) liabilities Read the Next, record the cash payments on account for $9 260,000 Jul (32,000 units at $60) Nov (52.000 units at $64) Journal Entry $ 1,920,000 3 328,000 4,340.000 Date Accounts Debit Credit Dec (62,000 units at $70) Total purchases $ 9.588.000 Jan 31 Done record the cost related to the sale Now record the sale of merchandise for $15,375,000, of which $5,000,000 was for cash and the balance was on account (Do We will do this in the next journal entry) Journal Entry Accounts Debit Credit 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 dolar) Journal Entry Date Accounts Debit Credit Jan 31 Now record the $3,750,000 operating expenses for the year Good Buy paid 70% in cash and accrued nearest whole dollar) ast as accrued liabilities (Round your final answers to the Journal Entry Accounts Date 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 (Aubreviations used: Beg Bal = Beginning Balance, COGS = Cost 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 Good Buy Store in Ocala Income Statement Year Ended January 31, 2018 Not income foss)
