Required information [The following information applies to the questions displayed below) Nixit 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 Sales discounts $ 37,800 115,300 7.000 160,200 4,700 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 6,500 105,000 10,300 32,500 5.000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 4-9 (The solution from OS 4-9 is required to complete this question.) View transaction ist Required information Journal entry worksheet 1 2. Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. Date Debit Credit Depreciation expense July 31 Dividends Income summary Merchandise inventory Miscellaneous expenses