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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

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) $ 31,500
Other (non-inventory) assets 126,000
Total liabilities $ 36,383
Common stock 63,738
Retained earnings 42,403
Dividends 8,000
Sales 215,460
Sales discounts 3,297
Sales returns and allowances 14,220
Cost of goods sold 84,041
Sales salaries expense 29,518
Rent expenseSelling space 10,127
Store supplies expense 2,586
Advertising expense 18,314
Office salaries expense 26,933
Rent expenseOffice space 2,586
Office supplies expense 862
Totals $ 357,984 $ 357,984

Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 92,610
Purchases discounts received 1,945
Purchases returns and allowances 4,445
Costs of transportation-in 3,900

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