The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Gap's fiscal 2015 annual report.

Selected Balance Sheet Data ($ millions)	2015	2014
Inventories	$1,901	$1,861
Accounts Payable	1,140	1,145

a. The Gap purchased inventories totaling $10,314 million during the fiscal 2015. Use the financial statement effects template to record cost of goods sold for The Gap's fiscal year ended 2015. (Assume accounts payable is used only for recording purchases of inventories and all inventories are purchased on credit.)

b. What amount did the company pay to suppliers during the year? Record this with the financial statement effects template.

Use negative signs with answers, if appropriate.

						Balance Sheet								Income Statement
Transaction		Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital		Revenues	-	Expenses	=	Net income
a. Recognize cost of goods sold.
b. Cash paid to suppliers.

Answer rating: 100% (QA)

Transaction a Recognize cost of goods sold b Cash paid to supplie... View the full answer