Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Credit Debit $ 40,900 64,500 $ 25,200 17,440 21,800 8,200 225, 400 Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends 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 Totals 2,290 12,500 73,100 32,700 8,600 1,200 13,500 28,400 3,500 450 $289, 840 $289,840 On August 31, 2017, merchandise inventory was $25,200. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $91,300 2,800 4,500 4,800 Required: 1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used). Journal entry worksheet 2 3 4 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. General Journal Debit Credit Date Aug 31