On December 31, 2013, the Merchandise Inventories Account of the Japanese

Multiple Choice

On December 31, 2013, the Merchandise Inventories account of the Japanese electronics firm Flower Limited (Flower) had a balance of ¥408,700 million, based on Flower's financial reports for fiscal 2013.Assume that during 2014, Flower purchased merchandise inventories on account for ¥1,456,400 million.On December 31, 2014, it finds that merchandise inventory on hand is ¥412,400 million.Select the correct journal entries to account for all changes in the Inventories during 2014.(Flower applies Japanese accounting standards, and reports its results in millions of yen (¥) .In answering this question, assume that Flower uses either U.S.GAAP or IFRS; for purposes of this problem, this choice will not matter.)

A) Cost of Goods Sold ¥1,452,700 million
Merchandise Inventories ¥1,452,700 million
B) Merchandise Inventories ¥1,452,700 million
Cost of Goods Sold ¥1,452,700 million
C) Cost of Goods Sold ¥1,449,000 million
Merchandise Inventories ¥1,449,000 million
D) Merchandise Inventories ¥1,449,000 million
Cost of Goods Sold ¥1,449,000 million
E) none of the above