[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) $ 42,000 Other (non-inventory) assets 168,000 Total liabilities $ 48,510 Common stock 81,013 Retained earnings 56,537 Dividends 8,000 Sales 287,280 Sales discounts 4,395 Sales returns and allowances 18,960 Cost of goods sold 110,754 Sales salaries expense 39,357 Rent expenseSelling space 13,502 Store supplies expense 3,447 Advertising expense 24,419 Office salaries expense 35,910 Rent expenseOffice space 3,447 Office supplies expense 1,149 Totals $ 473,340 $ 473,340 Beginning merchandise inventory was $33,894. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $ 123,480 Purchases discounts received 2,593 Purchases returns and allowances 5,927 Costs of transportation-in 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).