150,000 8,000 supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Debit $ 37,500 Credit $ 43,313 124,091 256,500 Sales discounts 3,924 Sales returns and allowances 16,929 Cost of goods sold 99,306 Sales salaries expense 35,141 Rent expense-Selling space 12,056 Store supplies expense 3,078 Advertising expense 21,803 office salaries expense 32,063 Rent expense-office space 3,078 office supplies expense Totals 1,026 $ 423,904 $ 423,904 Beginning merchandise inventory was $30,263. 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 $ 110,250 2,315 5,292 3,900 Required: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.