3 Part 2 of 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. 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. Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Debit $ 41,000 164,000 Credit $ 47,355 134,560 8,000 280,440 4,291 Sales returns and allowances 18,509 Cost of goods sold 108,210 Sales salaries expense 38,420 Rent expense-Selling space 13,181 Store supplies expense 3,365 Advertising expense 23,837 Office salaries expense 35,055 Rent expense-office space 3,365 1,122 Office supplies expense Totals $ 462,355 $ 462,355 Beginning merchandise inventory was $33,087. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 120,540 2,531 5,786 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet < 1 2 3 4 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date Aug 31 General Journal Debit Credit Record entry Clear entry View general journal