Required information [The following information applies to the questions displayed below.] Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 40,300 120,300 7,000 Sales returns and allowances Cost of goods sold $ 6,000 106,500 159,200 Depreciation expense Salaries expense 10,800 35,000 3,400 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,900.