Question

Saved Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 42,300 40,810 $ 24,700 20,500 8,200 226,000 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Totals 2,240 14,000 74,700 32,500 8,500 2,000 12,500 29,600 3,500 350 $271,200 $271,200 Beginning merchandise inventory was $26,000. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $93,000 2,000 4,600 4,600 2 of 2 Next >

Answer 1

Aug 31	Sales	226000
	Income Summary		226000
Aug 31	Income Summary	179890
	Sales discounts		2240
	Sales returns and allowances		14000
	Cost of goods sold		74700
	Sales salaries expense		32500
	Rent expense—Selling space		8500
	Store supplies expense		2000
	Advertising expense		12500
	Office salaries expense		29600
	Rent expense—Office space		3500
	Office supplies expense		350
Aug 31	Income Summary	46110		=226000-179890
	K. Valley, Capital		46110
Aug 31	K. Valley, Capital	8200
	K. Valley, Withdrawals		8200