QS 4-9 Closing entries LO P3 Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system) $ 39,800 119,300 Sales returns and allowances Cost of goods sold (excluding shrinkage) Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 6,100 106,200 10,700 34,500 5,000 7,000 Depreciation expense 159,400 Salaries expense 3,300 Miscellaneous expenses A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,450 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage View transaction list Journal entry worksheet 2 Record the entry to close the temporary revenue and accounts with credit balances. Note: Enter debits before credits Date General Journal Debit Credit July 31