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Valley Company$$s adjusted account balances from its general ledger on August $31,$ its fiscal year$-$end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense$$selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances Debit Credit

Merchandise inventory $($ending$)$ $ $41,500$

Other $($non$-$inventory$)$ assets $166,000$

Total liabilities $ $47,933$

Common stock $80,192$

Retained earnings $55,864$

Dividends $8,000$

Sales $283,860$

Sales discounts $4,343$

Sales returns and allowances $18,735$

Cost of goods sold $109,483$

Sales salaries expense $38,889$

Rent expense$$Selling space $13,341$

Store supplies expense $3,406$

Advertising expense $24,128$

Office salaries expense $35,483$

Rent expense$$Office space $3,406$

Office supplies expense $1,135$

Totals $ $467,849$ $ $467,849$

Beginning merchandise inventory was $$33,491.$ Supplementary records of merchandising activities for the year ended August $31$ reveal the following itemized costs.

Invoice cost of merchandise purchases $ $122,010$

Purchases discounts received $2,562$

Purchases returns and allowances $5,856$

Costs of transportation$-$in $3,900$

Required:

Prepare closing entries as of August $31($the perpetual inventory system is used$).$