Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.

August 10		Purchased merchandise on account, $31,400, terms 2/10, n/30.
13		Returned part of the purchase of August 10, $1,500, and received credit on account.
15		Purchased merchandise on account, $36,200, terms 1/10, n/60.
25		Purchased merchandise on account, $42,600, terms 2/10, n/30.
28		Paid invoice of August 15 in full