Other (non-inventory) assets Total liabilities. 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) Common stock Debit $ 36,000 144,000 Credit $ 41,580 71,141 Retained earnings 48,460 Dividends 8,000 Sales 246,240 Sales discounts. 3,767 Sales returns and allowances 16,252 Cost of goods sold 95,489 Sales salaries expense 33,735 Rent expense-Selling space 11,573 Store supplies expense 2,955 Advertising expense 20,930 office salaries expense 30,780 Rent expense-Office space 2,955 office supplies expense 985 $ 407,421 $ 407,421 Totals Beginning merchandise inventory was $29,052 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 5 105,840 2,223 5,080 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 1 General Journal Debit Credit