Required information [The following information applies to the questions displayed below.) Nix It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix It uses the perpetual inventory system). Merchandise inventory Retained earnings Dividends Sales $ 39,300 Sales returns and allowances 118,300 Cost of goods sold $ 6,200 105,900 10,600 34,000 5,000 Sales discounts 7,000 Depreciation expense 159,600 Salaries expense 3,200 Miscellaneous expenses. A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,000. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 4-11. View transaction list Journal entry worksheet < 1 2 Record the entry to close the income statement accounts with credit balances Note: Enter debits before credits. Date July 31 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. Date July 31 General Journal Debit Credit Record entry Clear entry View general journal