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[The following information applies to the questions displayed below.] 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)	$ 39,000
Other (non-inventory) assets	156,000
Total liabilities		$ 45,045
Common stock		76,078
Retained earnings		52,498
Dividends	8,000
Sales		266,760
Sales discounts	4,081
Sales returns and allowances	17,606
Cost of goods sold	103,121
Sales salaries expense	36,546
Rent expenseSelling space	12,538
Store supplies expense	3,201
Advertising expense	22,675
Office salaries expense	33,345
Rent expenseOffice space	3,201
Office supplies expense	1,067
Totals	$ 440,381	$ 440,381

Beginning merchandise inventory was $31,473. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 114,660
Purchases discounts received	2,408
Purchases returns and allowances	5,504
Costs of transportation-in	3,900

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