| Valley Company’s adjusted trial balance on August 31, 2013, its fiscal year-end, follows. |
| Debit | Credit | ||||||
| Merchandise inventory | $ | 32,000 | |||||
| Other (noninventory) assets | 128,000 | ||||||
| Total liabilities | $ | 36,960 | |||||
| Common stock | 43,076 | ||||||
| Retained earnings | 64,560 | ||||||
| Dividends | 8,000 | ||||||
| Sales | 218,880 | ||||||
| Sales discounts | 3,349 | ||||||
| Sales returns and allowances | 14,446 | ||||||
| Cost of goods sold | 85,312 | ||||||
| Sales salaries expense | 29,987 | ||||||
| Rent expense—Selling space | 10,287 | ||||||
| Store supplies expense | 2,627 | ||||||
| Advertising expense | 18,605 | ||||||
| Office salaries expense | 27,360 | ||||||
| Rent expense—Office space | 2,627 | ||||||
| Office supplies expense | 876 | ||||||
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| Totals | $ | 363,476 | $ | 363,476 | |||
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On August 31, 2012, merchandise inventory was $25,824. Supplementary records of merchandising activities for the year ended August 31, 2013, reveal the following itemized costs. |
| Invoice cost of merchandise purchases | $ | 94,080 |
| Purchase discounts received | 1,976 | |
| Purchase returns and allowances | 4,516 | |
| Costs of transportation-in |
3,900
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Compute the company’s net sales for the year.
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