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[The following information applies to the questions displayed below.] Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise
[The following information applies to the questions displayed below.]
Valley Companys adjusted trial balance on August 31, 2016, its fiscal year-end, follows.
Debit | Credit | ||||||
Merchandise inventory | $ | 38,000 | |||||
Other (noninventory) assets | 152,000 | ||||||
Total liabilities | $ | 43,890 | |||||
Common stock | 51,152 | ||||||
Retained earnings | 74,433 | ||||||
Dividends | 8,000 | ||||||
Sales | 259,920 | ||||||
Sales discounts | 3,977 | ||||||
Sales returns and allowances | 17,155 | ||||||
Cost of goods sold | 100,577 | ||||||
Sales salaries expense | 35,609 | ||||||
Rent expenseSelling space | 12,216 | ||||||
Store supplies expense | 3,119 | ||||||
Advertising expense | 22,093 | ||||||
Office salaries expense | 32,490 | ||||||
Rent expenseOffice space | 3,119 | ||||||
Office supplies expense | 1,040 | ||||||
Totals | $ | 429,395 | $ | 429,395 | |||
On August 31, 2015, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 111,720 |
Purchase discounts received | 2,346 | |
Purchase returns and allowances | 5,363 | |
Costs of transportation-in | 3,900 | |
|
Required:
1. Compute the companys net sales for the year.
. Compute the companys total cost of merchandise purchased for the year.
Income Statement | ||
For Year Ended August 31, 2016 | ||
Sales | $259,920 | |
Less: Sales discounts | $3,977 | |
Less: Sales returns and allowances | 17,155 | 21,132 |
Net sales | 238,788 | |
Gross loss | 238,788 | |
Expense | ||
Selling expenses | ||
Cost of goods sold | ||
Merchandise inventory | 30,666 | |
Cost of goods sold | 111,720 | |
Total selling expenses | 142,386 | |
General and administrative expenses | ||
Total general and administrative expenses | 0 | |
Total expenses | 142,386 | |
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