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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)	$ 44,000
Other (non-inventory) assets	176,000
Total liabilities		$ 50,820
Common stock		84,308
Retained earnings		59,229
Dividends	8,000
Sales		300,960
Sales discounts	4,605
Sales returns and allowances	19,863
Cost of goods sold	115,842
Sales salaries expense	41,232
Rent expenseSelling space	14,145
Store supplies expense	3,612
Advertising expense	25,582
Office salaries expense	37,620
Rent expenseOffice space	3,612
Office supplies expense	1,204
Totals	$ 495,317	$ 495,317

Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 129,360
Purchases discounts received	2,717
Purchases returns and allowances	6,209
Costs of transportation-in	3,900

Required:

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

Record the entry to close the income statement accounts with credit balances.

2

Record the entry to close the income statement accounts with debit balances.

3

Record the entry to close income summary.

4

Record the entry to close the Dividends account.