Exercise K Given the balances in this partial trial balance, indicate how the balances would be treated in the work sheet. The ending inventory is USD 96. (The amounts are unusually small for ease in rewriting the numbers. We purposely left out the Statement of Retained Earnings columns since they are not used.)

Accounts Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Merchandise Inventory 120 Sales S40 Sales Discounts 18 Sales Returns and Allowances 45 Purchases 600 Purchase Discounts 12 Purchase Returns and Allowances 24 Transportation-In 36