elson Inc. is merchandising business headquartered in the U.S. and selling primarily to wholesalers The accounting information system is based upon the principles and rules of U.S. Generally Accepted Accounting Principles (GAAP). Business activity is recorded on an accrual basis. The company employs the perpetual inventory system in accounting for its merchandise inventory. Sales revenue is recorded net of sales discounts. Purchases of inventory are also recorded net of purchases discounts. The company operates using a January through December fiscal year. The balances of the accounts in the general ledger as of November 30 of the current fiscal year are as follows: 110 Cash 45.300 111 Accounts Receivable 177,100 112 Inventory 251,400 113 Estimated Returns Inventory 8.100 114 Supplies 15,300 115 Prepaid Insurance 30,000 120 Land 170,000 121 Equipment 897.100 122 Accumulated Depreciation--Equip.. 229,600 210 Accounts Payable 37,810 211 Customer Refunds Payable 25,200 212 Salaries Payable 0 213 Interest Payable 0 214 220 Unearned Rent Notes payable (final payment due in 4 years) 33,200 50,000 310 Common Stock, $1 par 180,000 311 Retained Earnings 480,200 312 Dividends 75,000 313 Income Summary 0 4,350,400 410 Sales 510 Cost of Goods Sold 520 Sales Salaries Expense M acer 2,234,800 659,700