The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 24,950 13,000 5,500 2,300 42,800 $ 16, 350 18,000 6,000 28,000 2,300 114,850 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals 1,950 2,100 38,000 0 12,700 12,700 0 7,500 7,500 0 9,900 $ 183,200 $ 183,200 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end. View transaction list View journal entry worksheet x X: X Debit Credit 1 Store supplies still available at fiscal year-end amount to $1,600. Required 2 > 2 Expired insurance, an administrative expense, is $1,450 for the fiscal year. 3 Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. 4 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end. NELSON COMPANY Income Statement For Year Ended January 31 0 0 0 Expenses Selling expenses 0 Total selling expenses General and administrative expenses Total general and administrative expenses 0 Total expenses 0 NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses 0 Current ratio :1 Acid-test ratio :1 Gross margin ratio :1