[The following information applies to the questions displayed below.] Valley 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) $ 43,500 Other (non-inventory) assets 174,000 Total liabilities $ 50,243 Common stock 83,482 Retained earnings 58,556 Dividends 8,000 Sales 297,540 Sales discounts 4,552 Sales returns and allowances 19,638 Cost of goods sold 114,570 Sales salaries expense 40,763 Rent expenseSelling space 13,984 Store supplies expense 3,570 Advertising expense 25,291 Office salaries expense 37,193 Rent expenseOffice space 3,570 Office supplies expense 1,190 Totals $ 489,821 $ 489,821 Beginning merchandise inventory was $35,105. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $ 127,890 Purchases discounts received 2,686 Purchases returns and allowances 6,139 Costs of transportation-in 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).