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...

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: (Millions of £) February 23, 2008 February 24, 2007 Merchandise Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . £2,420 £1,911 Trade Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,936 3,317 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 this cost?