Kristen Montana operates a retail clothing operation. She purchases all merchandise inventory on credit and uses a periodic inventory system. The accounts payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2008, 2009, 2010, and 2011.
2008 2009 2010 2011
- Inventory (ending) $13,000 $11,300 $14,700 $12,200
- Accounts payable (ending) 20,000
- Sales 225,700 227,600 219,500
- Purchase of merchandise
- inventory on account 146,000 145,000 129,000
- Cash payments to suppliers 135,000 161,000 127,000