Inferring Transactions from Financial Statements Amazon. com 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 ac- count. The following T-accounts reflect information contained in the company's 2017 and 2016 balance sheets (in millions). Inventories 12/31/2016 Bal. $11,461 12/31/2017 Bal. $16,047 Accounts Payable $25,309 12/31/2016 Bal. $34,616 12/31/2017 Bal. 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 31, 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 31, 2017?