The Office Mart store in South Beach experienced the following
The Office Mart store in South Beach experienced the following events during the current year:
1. Incurred $200,000 in marketing costs.
2. Purchased $600,000 of merchandise.
3. Paid $20,000 for transportation-in costs.
4. Incurred $200,000 of administrative costs.
5. Took an inventory at year-end and learned that goods costing $100,000 were on hand. This compared with a beginning inventory of $150,000 on January 1.
6. Determined that sales revenue during the year was $1,500,000.
7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Give the amounts for the following items in the Merchandise Inventory account:
a. Beginning balance (BB).
b. Transfers-in (TI).
c. Ending balance (EB).
d. Transfers-out (TO).