Use the data for Rusio Company in Problem to complete the following requirements.

In Problem, Rusio Company's adjusted trial balance on August 31, 2009, its fiscal year-end, follows.

On August 31, 2008, merchandise inventory was $35,104. Supplementary records of merchandising activities for the year ended August 31, 2009, reveal the following itemized costs.
Invoice cost of merchandise purchases . . . . . . $127,890
Purchase discounts received . . . . . . . . . . . . . . . . .    2,685
Purchase returns and allowances . . . . . . . . . . . . .    6.138
Costs of transportation-in . . . . . . . . . . . . . . . . . . .     3,900

Required

1. Prepare closing entries as of August 31, 2009 (the perpetual inventory system is used).

Analysis Component

2. The company makes all purchases on credit, and its suppliers uniformly offer a 3% sales discount. Does it appear that the company's cash management system is accomplishing the goal of taking all available discounts? Explain.

3. In prior years, the company experienced a 4% returns and allowance rate on its sales, which means approximately 4% of its gross sales were eventually returned outright or caused the company to grant allowances to customers. How do this year's results compare to prior years' results?

Debit Credit S 43,500 174,000 Merchandise inventory. Other (noninventory) assets Total labilities Common stock .. Retained earnings .. Dividends 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 Totals 50,242 83481 58,555 8.000 297,540 4,552 19.637 114,571 40,762 13,984 3.570 25,290 37,192 3,570 1.190 $489,818 $489,818