Refer to QS 4-8 and prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage that is made to solve QS 4-8.
Merchandise inventory...............................$ 37,800
Retained earnings......................................115,300
Dividends..................................................7,000
Sales.....................................................160,200
Sales discounts............................................4,700
Sales returns and allowances.........................$ 6,500
Cost of goods sold....................................105,000
Depreciation expense...................................10,300
Salaries expense.........................................32,500
Miscellaneous expenses..................................5,000