supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock Debit $ 36,500 Credit 146,000 Retained earnings $ 42,158 49,133 71,965 Dividends 8,000 Sales 249,660 Sales discounts 3,820 Sales returns and allowances 16,478 Cost of goods sold 96,761 Sales salaries expense 34,203 Rent expense-Selling space 11,734 Store supplies expense 2,996 Advertising expense 21,221 Office salaries expense 31,208 Rent expense-Office space 2,996 Office supplies expense 999 Totals $412,916 $412,916 Beginning merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $107,310 2,254 5,151 3,900 Problem 4-4A (Algo) Preparing closing entries and interpreting information about discounts and returns LO C1, P3