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 T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 40,890 Sales returns and allowances 121,380 Cost of goods sold 7,000 Depreciation expense 159,000 Salaries expense 3,500 Miscellaneous expenses $ 5,900 106,800 10,900 35,500 5,000 A physical count of its July 31 year-end Inventory discloses that the cost of the merchandise inventory still available is $39,350 QS 5-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) Journal entry worksheet Record the entry to close the income statement accounts with credit balances Note: Enter debits before credits. General Journal Debit Credit Date July 31 1 purnal entry worksheet Record the entry to close the income statement accounts with debit balances. te: Enter debits before credits. General Journal Debit Credit Date July 31 Record entry Clear entry View general journal