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Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable
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Answer #1

Calculation of Amount of Inventory Purchased: Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory So, Purb. Journal Entries to show net effect of Merchandise Purchased during the reporting period: Journal Entries Date Account Titl

> Answer 1 is correct.

Answer 2:
Debit:
Cost of Goods sold - 210
Inventory - 1.5 (76.5 - 75.0)
Credit:
Accounts Payable - 2.4 (20.4 - 18.0)
Cash - 209.1

Violet Flower Tue, May 31, 2022 2:57 PM

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