Required information Nix'lt 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 $ 38,300 116,300 7,000 160,000 3,000 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses 6,400 105,300 10,400 33,000 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,100. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the ent shrinkage. View transaction list Journal entry worksheet