Question

Hello? How did this person get the '174,400' for the second income summary?

Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows Credit Debit 42000 | $ 61.920 25.600 Merchandise inventory Other (noninventory) assets Total abilities Common stock Retained earnings Dividends Sales Sales discounts 31300 8.700 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 12000 29,200 Tons On August 31, 2016, merchandise inventory was $25.300. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs Sl 91.100 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in Required 1 Precere closing entries as of August 31, 2017 the perpetual entory system is used Expert Answer bilan this eraner elolu? Debit Date 31-Aug General Journal Sales Income summary 225,200 22 200 31-Aug 174,400 income summary Sales discounts 2.250

Answer 1

Sales discounts	2250
sales returns and allowances	13500
cost of goods sold	72200
sales salaries expense	31300
rent expense-selling space	8700
store supplies expense	1500
advertising expense	12000
office salaries expense	29200
rent expense-office space	3400
office supplies expense	350
total	174400
hence your entry
Accounts	debit	credit
Income summary	174400
Sales discounts		2250
sales returns and allowances		13500
cost of goods sold		72200
sales salaries expense		31300
rent expense-selling space		8700
store supplies expense		1500
advertising expense		12000
office salaries expense		29200
rent expense-office space		3400
office supplies expense		350