[The following information applies to the questions displayed below.] Kelley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances	Debit	Credit
Merchandise inventory (ending)	$ 38,000
Other (non-inventory) assets	152,000
Total liabilities		$ 43,890
K. Valley, Capital		125,585
K. Valley, Withdrawals	8,000
Sales		259,920
Sales discounts	3,977
Sales returns and allowances	17,155
Cost of goods sold	100,577
Sales salaries expense	35,609
Rent expenseSelling space	12,216
Store supplies expense	3,119
Advertising expense	22,093
Office salaries expense	32,490
Rent expenseOffice space	3,119
Office supplies expense	1,040
Totals	$ 429,395	$ 429,395

Beginning merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. * Journal Entry

Invoice cost of merchandise purchases	$ 111,720
Purchases discounts received	2,346
Purchases returns and allowances	5,363
Costs of transportation-in	3,900

Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).

Kelley 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. Credit Debit $ 38,000 152,000 $ 43,890 125,585 8,000 259,920 Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense 3,977 17,155 100,577 35,609 12,216 3,119 22,093 32,490 3,119 1,040 Totals $ 429,395 $ 429,395 Beginning merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 111,720 2,346 5,363 3,900