M3-24 Inferring Transactions from Financial Statements

Lowes is the second-largest home improvement retailer in the world, with 2,002 stores. During its fiscal year ended in February 2019, Lowes purchased merchandise inventory at a cost of $49,569 (millions). Assume all purchases were made on account and accounts payable is only used for inventory purchases. The following T-accounts reflect information contained in the company's February 2018 and 2019 Balance sheets.

Merchandise InventoriesAccounts Payable

Feb 2018 Bal. 8,9115,124 Feb 2018 Bal.

Feb 2019 Bal. 9,4585,633 Feb 2019 Bal.

A.Use the financial statement effects template to record Lowe's purchases during the fiscal year ended February 2019?

B.What amount did Lowes pay in cash to its suppliers during the fiscal year ended February 2019? Explain.

C.Use the financial statement effects template to record cost of sales for the fiscal year ended in February 2019.