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Valley Company s adjusted account balances from its general ledger on August 3 1 , its fiscal year - end, follows. It categorizes the following

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) $ 34,500
Other (non-inventory) assets 138,000
Total liabilities $ 39,848
K. Valley, Capital 115,114
K. Valley, Withdrawals 8,000
Sales 235,980
Sales discounts 3,610
Sales returns and allowances 15,575
Cost of goods sold 91,673
Sales salaries expense 32,329
Rent expenseSelling space 11,091
Store supplies expense 2,832
Advertising expense 20,058
Office salaries expense 29,498
Rent expenseOffice space 2,832
Office supplies expense 944
Totals $ 390,942 $ 390,942
Beginning merchandise inventory was $27,842. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases $ 101,430
Purchases discounts received 2,130
Purchases returns and allowances 4,869
Costs of transportation-in 3,900
Required:
Prepare closing entries as of August 31(the perpetual inventory system is used).

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