Question

chegg valley company’s adjusted trial balance on august 31, its fiscal year-end, follows. it categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. it categorizes the remaining expenses as general and administrative. debitcreditmerchandise inventory (ending) $33,000 other (noninventory) assets 132,000 total liabilities $38,115 common stock 44,422 retained earnings 66,207 dividends 8,000 sales 225,720 sales discounts 3,454 sales returns and allowances 14,898 cost of goods sold 87,857 sales salaries expense 30,924 rent expense—selling space 10,609 store supplies expense 2,709 advertising expense 19,186 office salaries expense 28,215 rent expense—office space 2,709 office supplies expense 903 totals $374,464 $374,464

Answer 1

In this case, the company's net sales for the year amount to $235,647.

Step-by-step explanation:

To compute the company's net sales for the year, we need to calculate the total sales and then deduct sales discounts and returns/allowances.

Given the adjusted trial balance, the sales figure is $256,500.

Now, let's calculate the deductions:

1. Sales discounts: The adjusted trial balance shows a sales discount of $3,924.

2. Sales returns and allowances: The adjusted trial balance shows sales returns and allowances of $16,929.

To compute the net sales, subtract the sales discounts and returns/allowances from the total sales:

Net Sales = Total Sales - Sales Discounts - Sales Returns and Allowances

Net Sales = $256,500 - $3,924 - $16,929

Net Sales = $235,647

Therefore, the company's net sales for the year amount to $235,647.

Your question is incomplete, but most probably the full question was:

Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Debit Credit

Merchandise inventory (ending) $ 37,500

Other (noninventory) assets 150,000

Total liabilities $ 43,313

Common stock 50,479

Retained earnings 73,612

Dividends 8,000

Sales 256,500

Sales discounts 3,924

Sales returns and allowances 16,929

Cost of goods sold 99,306

Sales salaries expense 35,141

Rent expense—Selling space 12,056

Store supplies expense 3,078

Advertising expense 21,803

Office salaries expense 32,063

Rent expense—Office space 3,078

Office supplies expense 1,026

Totals $ 423,904 $ 423,904

Beginning merchandise inventory was $30,263. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 110,250

Purchases discounts received 2,315

Purchases returns and allowances 5,292

Costs of transportation-in 3,900

Required:

Compute the company’s net sales for the year.