Commonstock5,000Retainedearnings27,000Dividends2,200Sales111,950Salesdiscounts2,000Salesreturns andallowances2,200Cost ofgoods sold38,400Depreciationexpense—Storeequipment0Salariesexpense35,000Insuranceexpense0Rentexpense15,000Storesuppliesexpense0Advertisingexpense9,800Totals$169,200$169,200Rent expense and salaries expense are equally divided between selling activities and the general andadministrative activities. Nelson Company uses a perpetual inventory system.a.Store supplies still available at fiscal year-end amount to $1,750.b.Expired insurance, an administrative expense, for the fiscal year is $1,400.c.Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.d.To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900of inventory is still available at fiscal year-end.DateGeneral JournalDebitCreditJan 31Store supplies expense4,050Store supplies4,050Jan 31Insurance expense1,400Prepaid insurance1,400Jan 31Depreciation expense—Store equipment1,525