Western Trading Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Western Trading ends each January 31. Assume you are dealing with a single Western Trading store in Nashville, Tennessee. The Nashville store began the year with an inventory of 20,000 units that cost a total of $1,060,000. During the year, the store purchased merchandise on account as follows: (Click the icon to view the purchases.) Cash payments on account totaled $8,541,000. During fiscal year 2018, the store sold 155,000 units of merchandise for $15,887,500, of which $4,900,000 was for cash and the balance was on account. Western Trading and all of its stores use the average-cost method for inventories. The Nashville store's operating expenses for the year were $2,250,000. 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. Data table July (29,000 units at $59). November (49,000 units at $63). December (59,000 units at $69) ..... Total purchases.. $ 1,711,000 3,087,000 4,071,000 $ 8,869,000 Requirements I 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2018. Western Trading 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, 2018. Show totals for gross profit, income before tax, and net income