Required information Use the following information for the Quick Study below. [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 $ 39,800 119,300 7,000 Sales returns and allowances Cost of goods sold $ 6,100 106,200 Depreciation expense 10,700 159,400 Salaries expense 34,500 3,300 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 $38,450.