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Journal entries for inventories and accounts payable. On December 31, 2006, the Merchandise Inventories account of the Japanese electronics firm Fujitsu Limited (Fujitsu) had a
Journal entries for inventories and accounts payable. On December 31, 2006, the Merchandise Inventories account of the Japanese electronics firm Fujitsu Limited (Fujitsu) had a balance of 408,710 million, based on Fujitsu's financial reports for fiscal 2007. Assume that during 2007, Fujitsu purchased merchandise inventories on account for 1,456,412 million. On December 31, 2007, it finds that merchandise inventory on hand is 412,387 million. The Accounts Payable account had a balance of 757,006 million on December 31, 2006, and 824,825 million on December 31, 2007. Fujitsu applies Japanese accounting standards, and reports its results in millions of yen ( ). In answering this question, assume that Fujitsu uses either U.S. GAAP or IFRS; for purposes of this problem, this choice will not matter. Present journal entries to account for all changes in the Inventories and Accounts Payable accounts during 2007. Fujitsu applies Japanese accounting standards, and reports its results in milions of yen ( )
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