Barkley Company's adjusted trial balance on March 31, 2017, its fiscal year-end, follows.

On March 31, 2016, merchandise inventory was $37,500. Supplementary records of merchandising activities for the year ended March 31, 2017, reveal the following itemized costs.
Invoice cost of merchandise purchases ............................. $138,500
Purchases discounts received ......................................... 2,950
Purchases returns and allowances ................................... 6,700
Costs of transportation-in ............................................ 5,750
Required
1. Compute the company's net sales for the year.
2. Compute the company's total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

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Debit Credit Merchandise Inventory. S 56,500 S42,500 164.425 Total Iiabilities.... C. Barkley, Capital 3,000 Sales Sales discounts... Sales returns and allowances Cost of goods sold 332,650 Rent expense-Selling space.... Store supplles expense Advertising expense. Office salarles expense Rent expense-Office space Office supplies expense. … 5,875 20,000 115,600 44,500 16,000 3,850 26,000 40,750 3,800 .100 $539,575 $539,575