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 T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 45,300 130,300 7,000 Sales returns and allowances Cost of goods sold $ 5,000 109,500 Depreciation expense Salaries expense 11,800 40,000 4,400 Miscellaneous expenses 5,000 162,100 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,400. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) View transaction list Journal entry worksheet