QS 4-9 Closing entries LO P3 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 $ 44,800 Sales returns and allowances $ 5,100 Retained earnings 129,300 Cost of goods sold (excluding shrinkage) 109,200 Dividends 7,000 Depreciation expense 11,700 Sales 161,600 Salaries expense 39,500 Sales discounts 4,300 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 $42,950. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage.