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) $42,100
Other (noninventory) assets 60,690
Total liabilities $ 25,900
Common stock 15,760
Retained earnings 19,700
Dividends 9,000
Sales 226,100
Sales discounts 2,270
Sales returns and allowances 12,500
Cost of goods sold 73,300
Sales salaries expense 32,200
Rent expense—Selling space 8,500
Store supplies expense 2,000
Advertising expense 12,500
Office salaries expense 28,800
Rent expense—Office space 3,300
Office supplies expense 300
Totals $287,460 $287,460