The following information applies to the questions displayed below.
Valley Company's adjusted account balances from its general ledger on August its fiscal yearend, 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.
tableAdjusted Account Balances,Debit,CreditMerchandise inventory ending$Other noninventory assets,Total liabilities,,$
Required:
Compute the companys net sales for the year.
Compute the companys total cost of merchandise purchased for the year.
Prepare a multiplestep income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
Prepare a singlestep income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Prepare closing entries as of August the perpetual inventory system is used
