Inventory and accounts payable journal entries. Tesco Plc. is the U.K.'S largest grocery store chain. It applies
Question:
Inventory and accounts payable journal entries. Tesco Plc. is the U.K.'S largest grocery store chain. It applies IFRS and reports its results in millions of pounds sterling (£). For the years ended February 23, 2008, and February 24, 2007, Tesco reported the following balances in Trade Payables and Merchandise Inventory:
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During the year ended February 23, 2008, Tesco paid its suppliers £43,558 million. Assume that Trade Payables relates only to inventory.
a. What journal entry did Tesco make to record the payments to suppliers during the year ended February 23, 2008?
b. How much merchandise inventory did Tesco purchase during the year ended February 23, 2008, and what journal entry did it make to record those purchases?
c. What was Tesco's Cost of Goods Sold for the year ended February 23, 2008? What journal entry did it record to reflect thiscost?
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
Tesco Plc inventory and accounts payable journal entries a Trade Payables 43558 Cash 43558 ...View the full answer
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
