Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4

[The following information applies to the questions displayed below.] Compute the companys total cost of merchandise purchased for the year.

Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	36,500
Other (noninventory) assets			146,000
Total liabilities					$	42,158
Common stock						49,133
Retained earnings						71,965
Dividends			8,000
Sales						249,660
Sales discounts			3,820
Sales returns and allowances			16,478
Cost of goods sold			96,761
Sales salaries expense			34,203
Rent expenseSelling space			11,734
Store supplies expense			2,996
Advertising expense			21,221
Office salaries expense			31,208
Rent expenseOffice space			2,996
Office supplies expense			999
Totals		$	412,916		$	412,916

On August 31, 2014, merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	107,310
Purchase discounts received		2,254
Purchase returns and allowances		5,151
Costs of transportation-in		3,900