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Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable Beginning balance Ending balance Inventory 75.0 76.51 Accounts Payabl e 18. Beginning balance 20.4 Ending balance Required: 1. Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the reporting period if cost of goods sold was $210 million. 2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
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