Required informationUse the following information for the Exercises below.

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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$39,300Sales returns and allowances$6,200Retained earnings118,300Cost of goods sold105,900Dividends7,000Depreciation expense10,600Sales159,600Salaries expense34,000Sales discounts3,200Miscellaneous expenses5,000A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,000.