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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

NELSON COMPANYUnadjusted Trial BalanceJanuary 31DebitCreditCash$ 27,650Merchandise inventory13,000Store supplies5,600Prepaid insurance2,500Store equipment42,800Accumulated depreciationStore equipment$ 17,850Accounts payable14,000Common stock5,000Retained earnings33,000Dividends2,300Sales116,150Sales discounts2,000Sales returns and allowances2,150Cost of goods sold38,000Depreciation expenseStore equipment0Sales salaries expense13,400Office salaries expense13,400Insurance expense0Rent expenseSelling space7,000Rent expenseOffice space7,000Store supplies expense0Advertising expense9,200Totals$ 186,000$ 186,000

Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,750.
2. Expired insurance, an administrative expense, is $1,750 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,000 of inventory is still available at fiscal year-end.

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