Prepare a summary entry that represents the net effect

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Reference no: EM131008248

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

Required:

1. Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the reporting period if cost of goods sold was $300 million.

2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.

Reference no: EM131008248

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