CH Problem 5-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Credit Debit $ 40, 500 162,000 $ 46, 778 133,065 8,000 277,020 Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense office salaries expense Rent expense-office space office supplies expense Totalo 4,238 18,283 106,939 37,952 13,020 3, 324 23,547 34,628 3,324 1,108 $ 456,863 $456,863 On August 31, 2016, merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $119,070 2,500 5,715 3,900