Valley Companys adjusted account balances from its general ledger on August 31, its fiscal year-end, is as follows.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 34,000
Other (non-inventory) assets	136,000
Total liabilities		$ 39,270
K. Valley, Capital		113,619
K. Valley, Withdrawals	8,000
Sales		232,560
Sales discounts	3,558
Sales returns and allowances	15,349
Cost of goods sold	90,401
Sales salaries expense	31,861
Rent expenseSelling space	10,930
Store supplies expense	2,791
Advertising expense	19,768
Office salaries expense	29,070
Rent expenseOffice space	2,791
Office supplies expense	930
Totals	$ 385,449	$ 385,449

VALLEY COMPANY
Income Statement
For Year Ended August 31
Net sales
Expenses
Cost of goods sold
Selling expenses
General and administrative expenses
Total expenses
Net income