Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Debit $ 44,000 Credit 176,000 $ 50,820 143,537 8,000 300,960 4,605 Sales returns and allowances 19,863 Cost of goods sold 115,842 Sales salaries expense 41,232 Rent expense-Selling space 14,145 Store supplies expense 3,612 Advertising expense 25,582 Office salaries expense 37,620 Rent expense-Office space 3,612 Office supplies expense 1,204 Totals $ 495,317 $ 495,317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the ye August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 129,360 2,717 6,209 3,900