Problem 5-3A Computing merchandising amounts and formatting income statements LO C2, Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. redit Merchandise inventory Other (noninventory) assets Total: liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances14,898 Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-office space Office supplies expense Totals 33,000 132,000 s 38,115 110,629 8,000 225,720 3,454 87,857 30,924 10,609 2,709 19,186 28,215 2,709 903 $374,464 $374,464 On August 31, 2016, merchandise inventory was $26.631. Supplementary records of merchandising activities for the year August 31, 2017, reveal the following itemized costs $97,020 Invoice cost of merchandise purchases