Required information [The following information applies to the questions displayed below.] 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 Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock Retained earnings Debit $ 42,500 Credit 170,000 $ 49,088 57,210 81,838 Dividends 8,000 Sales 290,700 Sales discounts 4,448 Sales returns and allowances 19,186 Cost of goods sold 112,026 Sales salaries expense 39,826 Rent expense-Selling space 13,663 Store supplies expense 3,488 Advertising expense 24,710 Office salaries expense 36,338 Rent expense-Office space 3,488 Office supplies expense 1,163 Totals $478,836 $478,836 43 $ Rent expense-Office space Office supplies expense Totals Saved 3,488 1,163 $478,836 $478,836 Help Save & Exit Beginning merchandise inventory was $34,298. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases) Purchases discounts received Purchases returns and allowances Costs of transportation-in $124,950 2,624 5,998 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet 2 3 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date Aug 24 General Journal Debit Credit 13