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.

Beginning merchandise inventory was $$33,087.$ Supplementary records of merchandising activities for the year ended

August $31$ reveal the following itemized costs.

Required:

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

Journal entry worksheet

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

Note: Enter debits before credits.