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. Beginning merchandise inventory was $27,035. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). 1 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. Note : = journal entry has been entered