Problem
Valley Company's adjusted trial balance on August 31, 2015, its fiscal year-end, follows.
|
|
Debit
|
Credit
|
|
Merchandise inventory
|
36,500
|
|
|
Other (noninventory) assets
|
146,000
|
|
|
Total liabilities
|
|
42,158
|
|
Common stock
|
|
49,133
|
|
Retained earnings
|
|
71,965
|
|
Dividends
|
8,000
|
|
|
Sales
|
|
249,660
|
|
Sales discounts
|
3,820
|
|
|
Sales returns and allowances
|
16,478
|
|
|
Cost of goods sold
|
96,761
|
|
|
Sales salaries expense
|
34,203
|
|
|
Rent expense-Selling space
|
11,734
|
|
|
Store supplies expense
|
2,996
|
|
|
Advertising expense
|
21,221
|
|
|
Office salaries expense
|
31,208
|
|
|
Rent expense-Office space
|
2,996
|
|
|
Office supplies expense
|
999
|
|
|
Totals
|
412,916
|
412,916
|
On August 31, 2014, merchandise inventory was $29,456. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.
|
Invoice cost of merchandise purchases
|
107,310
|
|
Purchase discounts received
|
2,254
|
|
Purchase returns and allowances
|
5,151
|
|
Costs of transportation-in
|
3,900
|
Compute the company's total cost of merchandise purchased for the year.