Amazon Inc. is one of the world's leading e-commerce companies, with almost $120 billion in revenues for the fiscal year ended December 31, 2017. For the year ended December 31, 2017, Amazon's cost of goods sold was $111,934 million. Assume that all purchases were made on account. The following T-accounts reflect information contained in the company's 2017 and 2016 balance sheets (in millions). Inventories Account payable
12/31/2016 Bal. $11,461 $25,309 12/31/2016 Bal.
12/31/2017 Bal. $16,047 $34,616 12/31/2017 Bal.

Required:
a. Prepare the entry, using the financial statement effects template and in journal entry form, to record cost of goods sold for the year ended December 3 1 , 2017.
b. Prepare the entry, using the financial statement effects template and in journal entry form, to record Amazon's inventory purchases for the year ended December 31, 2017. (Assume all purchases are made on account.)
c. What amount did Amazon pay in cash to its suppliers for the year ended December 3 1 , 2017?

a. Date            Accounts Title & Explanation   Debit $'m    Credit $'m

Dec 31, 2017    Cost of Goods Sold                       $111,934  

                                Inventories                                                   $111,934

                        (COGS recorded for 2017 sale)

b. Date            Accounts Title & Explanation   Debit $'m    Credit $'m

Dec 31, 2017     Inventories                                    $116,520

                                 Accounts Payable                                     $116,520

                        (Inventories purchased in 2017)

Inventory Purchases = COGS + Closing Inventory - Opening Inventory = $111,934 + $16,047 - $11,461 = $116,520

c.  Date            Accounts Title & Explanation   Debit $'m    Credit $'m

Dec 31 2017     Accounts Payable                         $107,213

                                Cash                                                            $107,213

                        (Payment to suppliers for 2017 purchases)

Payment to suppliers = Purchases + Opening AP balance - Closing AP Balance = $116,520 + $25,309 - $34,616 = $107,213.

explanation: