Valley Company's 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 expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Debit $ 39,000 Credit Other (noninventory) assets Total liabilities 156,000 Common stock Retained earnings $ 45,045 52,498 76,078 Dividends 8,000 Sales 266,760 Sales discounts 4,081 Sales returns and allowances 17,606 Cost of goods sold 103,121 Sales salaries expense 36,546 Rent expense-Selling space 12,538 Store supplies expense 3,201 Advertising expense 22,675 Office salaries expense 33,345 Rent expense-Office space 3,201 1,067 $ 440,381 $ 440,381 Office supplies expense Totals Beginning merchandise inventory was $31,473. 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 $ 114,660 2,408 5,504 3,900 Required: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales $ 266,760 Less: Sales discounts (4,081) Less: Sales returns and allowances (17,606) Net sales $ 245,075 x Required 1 Required 2 Required 3 Required 4 Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased VALLEY COMPANY Income Statement For Year Ended August 31 Sales Less: Sales discounts Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses Selling expenses Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Total selling expenses General and administrative expenses Office salaries expense Rent expense-Office space Office supplies expense Total general and administrative expenses Total expenses Net income 0 0 0 0 0 0 Net sales VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Cost of goods sold Selling expenses General and administrative expenses Total expenses Net income 0 No Date 1 August 31 Sales Income summary 2 August 31 Income summary Sales discounts Answer is not complete. General Journal Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense 3 August 31 Income summary Additional paid-in capital 4 August 31 Additional paid-in capital K.Valley, Withdrawals Debit Credit