Inventory and accounts payable journal entries. Target Corporation, a U.S.-based retailer, follows U.S. GAAP and reports its results in millions of U.S. dollars ($). Its balance sheet for the years...

Inventory and accounts payable journal entries. Target Corporation, a U.S.-based retailer, follows U.S. GAAP and reports its results in millions of U.S. dollars ($). Its balance sheet for the years ended February 2, 2008, and February 3, 2007, contains the following information: (Millions of $) February 2, 2008 February 3, 2007 Merchandise Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,780 $6,254 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,721 6,575 Target’s income statement reports Cost of Goods Sold of $41,895 million for the year ended February 2, 2008. Assume that Accounts Payable relates only to inventory. a. How much merchandise inventory did Target purchase during the year ended February 2, 2008? b. What journal entry did Target make related to part a? Assume that Target made all purchases on account. c. What journal entry did Target make in the year ended February 2, 2008, to record its payments to vendors?