Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system) Sales returns and allowances Cost of goods sold (excluding shrinkage) $5,500 108,000 11,300 37,500 5,000 $ 42,800 125,300 Merchandise inventory Retained earnings Dividends Sales Sales discounts 7,000 Depreciation expense 159,600 Salaries expense 3.900 Miscellaneous expenses A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $41,150 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage Answer is complete but not entirely correct. Date General Journal Debit Credit July 31 Sales 159,600 159,600 ncome summary July 31 ncome summary 41,150 Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses Dividends 3,900 5,500 108,000 11,300 37,500 5000 7,000