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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

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) $ 38,000
Other (non-inventory) assets 152,000
Total liabilities $ 43,890
Common stock 74,433
Retained earnings 51,152
Dividends 8,000
Sales 259,920
Sales discounts 3,977
Sales returns and allowances 17,155
Cost of goods sold 100,577
Sales salaries expense 35,609
Rent expenseSelling space 12,216
Store supplies expense 3,119
Advertising expense 22,093
Office salaries expense 32,490
Rent expenseOffice space 3,119
Office supplies expense 1,040
Totals $ 429,395 $ 429,395

Beginning merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 111,720
Purchases discounts received 2,346
Purchases returns and allowances 5,363
Costs of transportation-in 3,900

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

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