Valley 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.

Adjusted Account Balances Debit Credit

Merchandise inventory $($ending$)$ $ $41,500$

Other $($non$-$inventory$)$ assets $166,000$

Total liabilities $ $47,933$

Common stock $80,192$

Retained earnings $55,864$

Dividends $8,000$

Sales $283,860$

Sales discounts $4,343$

Sales returns and allowances $18,735$

Cost of goods sold $109,483$

Sales salaries expense $38,889$

Rent expense$$Selling space $13,341$

Store supplies expense $3,406$

Advertising expense $24,128$

Office salaries expense $35,483$

Rent expense$$Office space $3,406$

Office supplies expense $1,135$

Totals $ $467,849$ $ $467,849$

Beginning merchandise inventory was $$33,491.$ Supplementary records of merchandising activities for the year ended August $31$ reveal the following itemized costs.

Invoice cost of merchandise purchases $ $122,010$

Purchases discounts received $2,562$

Purchases returns and allowances $5,856$

Costs of transportation$-$in $3,900$

Required:

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

Record the entry to close the income statement accounts with credit balances. Record the entry to close the income statement accouRecord the entry to close the Dividends accounts with debit balances. Record the entry to close income summary.