! Required information Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix"It uses the perpetual Inventory system). Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 39,300 Sales returns and allowances 118,300 Cost of goods sold 7,000 Depreciation expense 159, 600 Salaries expense 3,200 Miscellaneous expenses $ 6,200 105,900 10,600 34,000 5,000 A physical count of its July 31 year-end Inventory discloses that the cost of the merchandise inventory still available is $38,000. Prepare journal entrids to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage. View transaction list Journal entry worksheet 1 2 Record the entry to close the temporary revenue and accounts with credit balances. Note: Enter debits before credits General Journal Dobit Credit Date July 31 View transaction list Journal entry worksheet