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Valley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 41,000
Other (non-inventory) assets	164,000
Total liabilities		$ 47,355
Common stock		79,369
Retained earnings		55,191
Dividends	8,000
Sales		280,440
Sales discounts	4,291
Sales returns and allowances	18,509
Cost of goods sold	108,210
Sales salaries expense	38,420
Rent expenseSelling space	13,181
Store supplies expense	3,365
Advertising expense	23,837
Office salaries expense	35,055
Rent expenseOffice space	3,365
Office supplies expense	1,122
Totals	$ 462,355	$ 462,355

Beginning merchandise inventory was $33,087. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 120,540
Purchases discounts received	2,531
Purchases returns and allowances	5,786
Costs of transportation-in	3,900

Required:

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