NixIt Companys ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system).

Merchandise inventory	$	41,800	Sales returns and allowances	$	5,700
Retained earnings		123,300	Cost of goods sold (excluding shrinkage)		107,400
Dividends		7,000	Depreciation expense		11,100
Sales		158,600	Salaries expense		36,500
Sales discounts		3,700	Miscellaneous expenses		5,000

A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $40,250.

Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage.