Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] NixIt Companys ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (NixIt uses the perpetual inventory system). Merchandise inventory $ 46,300 Sales returns and allowances $ 4,800 Retained earnings 132,300 Cost of goods sold 110,100 Dividends 7,000 Depreciation expense 12,000 Sales 163,100 Salaries expense 41,000 Sales discounts 4,600 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $44,300. QS 4-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage. 1.Record the entry to close the temporary revenue and accounts with credit balances. 2.Record the entry to close the temporary expense and accounts with debit balances.