Question 6 ChPurchases returns and allowancesCosts of transportation-in4,9393,900Required:1. Compute the company's net sales for the year.2. Compute the company's total cost of merchandise purchased for the year.3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, andgeneral and administrative expenses.4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and generaland administrative expenses.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Compute the company's net sales for the year.Net SalesSalesNet salesRequired 1Required 2 > !Required information[The following information applies to the questions displayed below.]Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. Itcategorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, storesupplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.Adjusted Account BalancesMerchandise inventory (ending)Other (non-inventory) assetsTotal liabilitiesDebitCredit$ 35,000140,000$ 40,42569,49747,114Common stockRetained earningsDividends৪,০00Sales239,400Sales discounts3,66315,80092,94532,79811,2522,87320,34929,925Sales returns and allowancesCost of goods soldSales salaries expenseRent expense-Selling spaceStore supplies expenseAdvertising expenseOffice salaries expenseRent expense–Office spaceOffice supplies expense2,873958Totals$ 396,436$ 396,436Beginning merchandise inventory was $28,245. Supplementary records of merchandising activities for the year endedAugust 31 reveal the following itemized costs.$ 102,9002,1614,9393,900Invoice cost of merchandise purchasesPurchases discounts receivedPurchases returns and allowancesCosts of transportation-in< Prev6 of 6Next

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Purchases returns and allowances 4,939 3,900 Costs of transportation-in Required: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales Required 1 Required 2 >