Problem 5-3A Computing merchandising amounts and formatting income statements Lo C2, P4 Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows Debit S 31,000 124,800 Credit Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances 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 35,805 184,641 8,800 212,040 3,244 13,995 82,768 29,049 9,966 2, 544 18,023 26, 5e5 2, 544 $352,486 $352,486 On August 31, 2016, merchandise inventory was $25,017. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 91,140 1,914 4,375