i Data Table - X Jul (32,000 units at $60) $ 1,920,000 Nov (52,000 units at $64) 3,328,000 4,340,000 Dec (62,000 units at $70) Total purchases $ 9,588,000 Print Done d i Requirements st 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2021. Best Way 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. 2. Prepare a T-account to show the activity in the Inventory account. 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. M Print Done C 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.) f Cash payments on account totaled $9,260,000. During fiscal year 2021, the store sold 154,000 units of merchandise for $15,785,000, of which $5,600,000 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 $3,250,000. It paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%. Read the requirements. Let's start with the entry to record the purchases on account. Journal Entry Date Accounts Debit Credit Jan 31 Next, record the cash payments on account for $9,260,000. Journal Entry Date Accounts Debit Credit Jan 31 Monro Now record the sale of merchandise for $15.785,000, of which $5,600,000 was for cash and the balance was on account. (C the sale. We will do this in the next journal entry.) Journal Entry Debit Credit Date Accounts Jan 31 din (Round unit costs to the nearest rent Round your answer to the neares Record the cost related to the sale of merchandise. (Round unit costs to the nearest cent. Rou Journal Entry Date Accounts Debit Credit Jan 31 Now record the $3 250.000 operating expenses for the year. Best Way paid 70% in cash and a Now record the $3,250,000 operating expenses for the year. Best Way paid 70% in cash and accrued the rest as accrued liabilities. (Round to the nearest whole dollar) 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. (Abbrevi COGS = Cost 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. Best Way Store in Dallas Income Statement Year Ended January 31, 2021 Net income (loss) then continue to the next