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)	$ 40,500
Other (non-inventory) assets	162,000
Total liabilities		$ 46,778
Common stock		78,547
Retained earnings		54,518
Dividends	8,000
Sales		277,020
Sales discounts	4,238
Sales returns and allowances	18,283
Cost of goods sold	106,939
Sales salaries expense	37,952
Rent expenseSelling space	13,020
Store supplies expense	3,324
Advertising expense	23,547
Office salaries expense	34,628
Rent expenseOffice space	3,324
Office supplies expense	1,108
Totals	$ 456,863	$ 456,863

Beginning merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$ 119,070
Purchases discounts received	2,500
Purchases returns and allowances	5,715
Costs of transportation-in	3,900

Required:

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

1.) Record the entry to close the income statement accounts with credit balances.

2.) Record the entry to close the income statement accounts with debit balances.

3.) Record the entry to close income summary.

4.) Record the entry to close the Dividends account.