The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2017, unadjusted trial balance of Emiko Co.. Emiko Co. uses a perpetual inventory system.

DebitCreditMerchandise inventory$39,500Prepaid selling expenses7,500Dividends52,000Sales$605,000Sales returns and allowances21,300Sales discounts6,900Cost of goods sold250,000Sales salaries expense67,000Utilities expense24,500Selling expenses45,500Administrative expenses124,000

Additional Information

Accrued sales salaries amount to $1,700. Prepaid selling expenses of $2,800 have expired. A physical count of year-end merchandise inventory shows $34,400 of goods still available.

(a)Use the aboveaccount balances along with the additional information, prepare the adjusting entries.

(b)Use the aboveaccount balances along with the additional information, prepare the closing entries.