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Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise

Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system).

Merchandise inventory$43,800

Sales returns and allowances$5,300T.

Nix, Capital127,300

Cost of goods sold108,600T.

Nix, Withdrawals7,000

Depreciation expense11,500

Sales160,600

Salaries expense38,500

Sales discounts4,100

Miscellaneous expenses5,000

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,050.

Which one are the journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from?

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