[The following information applies to the questions displayed below.] Valley Companys adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 32,500
Other (non-inventory) assets	130,000
Total liabilities		$ 37,538
K. Valley, Capital		109,132
K. Valley, Withdrawals	8,000
Sales		222,300
Sales discounts	3,401
Sales returns and allowances	14,672
Cost of goods sold	86,585
Sales salaries expense	30,455
Rent expenseSelling space	10,448
Store supplies expense	2,668
Advertising expense	18,896
Office salaries expense	27,788
Rent expenseOffice space	2,668
Office supplies expense	889
Totals	$ 368,970	$ 368,970

Beginning merchandise inventory was $26,228. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 95,550
Purchases discounts received	2,007
Purchases returns and allowances	4,586
Costs of transportation-in	3,900