Valley Company's adjusted trial balance on August 31, 2016, its fiscal year end, follows S 42,200 41,080 Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Totals 5 24,000 17.280 4.320 8,500 225,000 2,270 13,000 73,500 32,000 8,600 1,500 13,000 29,900 3,700 450 s 270,600 270,000 On August 31, 2015, merchandise inventory was $25,600. Supplementary records of merchandising activitie Invoice cost of merchandise purchases Purchase discounts received Purchase returns and allowances Costs of transportation-in $92,300 2,700 4.400 4,900 Required: 1. Prepare closing entries as of August 31, 2016 (the perpetual inventory system is used). View transaction list Journal entry worksheet 2 Record the entry to close the income statement accounts with credit balances