NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 1,000 12,500 5,800 2,400 42,900

Required information 10 Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, points and current ratios LO A1, A2, P3, P4 [The following information applies to the questions displayed below.] eBook The following unadjusted trial balance is prepared at fiscal yearnd for Nelson Company. Nelson Company uses a pnnt perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It References -categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 12,500 42, 900 15,250 111, 950 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciationStore Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold equipment Debit 1,000 2, 200 2, 200 38 , Depreciation expenseStore equipment Credit 5, 27 6