Complet requirement 2 only P5-35A (alt3)Best Buy purchases merchandise inventory by the crate; each crate of inventory is a unit. The fiscal year of Best Buy ends each February 28. Assume you are dealingwith a single Best Buy store in Victoria, British Columbia, and that the store experienced the following: The store began fiscal year 2020 with an inventory of 18,000units that cost a total of $900,000. During the year, the store purchased merchandise on account as follows:(Click the icon to view the purchases.)Cash payments on account totalled $9,042,000. During fiscal year 2020, the store sold 154,000 units of merchandise for $14,784,000. Cash accounted for $5,400,000of this, and the balance was on account. Best Buy uses the FIFO method for inventories. Operating expenses for the year were $2,000,000. The store paid 80% in cashand accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%.RequirementsRequirement 1. Make summary journal entries to record the store's transactions for the year ended February 28, 2020. Best Buy uses a perpetual inventory system.Let's start with the entry to record the purchases. (Record debits first, then credits. Explanations are not required.)Journal EntryDateAccountsDebitCreditFeb.28Choose from any list or enter any number in the input fields and then click Check Answer.Check AnswerClear All9 partsremainingPDF| 耳HomeEndPrtScnF8DILF6F7F4FSF3FZ (Click the icon to view the purchases.)Cash payments on account totalled $9,042,000. During fiscal year 2020, the store sold 154,000 units of merchandise for $14,784,000. Cash accounted for $5,400,000 of this, anin cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%.RequirementsRequirement 1. Make summary journal entries to record the store's transactions for the year ended February 28, 2020. Best Buy uses a perpetual inventory system.Let's start with the entry to record the purchases. (Record debits first, then credits. Explanations are not required.)RequirementsPurchases1. Make summary journal entries to record the store's transactions for the yearended February 28, 2020. Best Buy uses a perpetual inventory system.2. Prepare a T-account to show the activity in the Inventory account.April (32,000 units @ cost of $59)$1,888,000August (52,000 units @ cost of $63)3,276,000Prepare the store's income statement for the year ended February 28, 2020,Show totals for gross profit, income before tax, and net income.3.4,278,000November (62,000 units @ cost of $69)4. Compute the gross profit percentage. How does this compare with last year'sgross profit percentage of 37%? What are some possible reasons for thechange?Total purchases.$9,442,000PrintDonePrintDoneChoose from any list or enter any number in the input fields and then click Check Answer.Clear All9 femainingFile ExplorerW WordCanon U Sca..CanoGoogle Chro...P Type here to search

Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Best Buy purchases merchandise inventory by the crate; each crate of inventory is a unit. The fiscal year of Best Buy ends each February 28. Assume you are dealing with a single Best Buy store in Victoria, British Columbia, and that the store experienced the following: The store began fiscal year 2020 with an inventory of 18,000 units that cost a total of $900,000. During the year, the store purchased merchandise on account as follows: (Click the icon to view the purchases.) Cash payments on account totalled $9,042,000. During fiscal year 2020, the store sold 154,000 units of merchandise for $14,784,000. Cash accounted for $5,400,000 of this, and the balance was on account. Best Buy uses the FIFO method for inventories. Operating expenses for the year were $2,000,000. The store paid 80% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%. Requirements Requirement 1. Make summary journal entries to record the store's transactions for the year ended February 28, 2020. Best Buy uses a perpetual inventory system. Let's start with the entry to record the purchases. (Record debits first, then credits. Explanations are not required.) Journal Entry Debit Credit Accounts Date Feb. 28

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q