Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows.

		Debit			Credit
Merchandise inventory		$	40,200
Other (noninventory) assets			61,440
Total liabilities					$	25,300
Common stock						16,640
Retained earnings						20,800
Dividends			8,600
Sales						226,300
Sales discounts			2,250
Sales returns and allowances			13,500
Cost of goods sold			75,000
Sales salaries expense			32,100
Rent expenseSelling space			8,200
Store supplies expense			1,700
Advertising expense			12,500
Office salaries expense			29,800
Rent expenseOffice space			3,300
Office supplies expense			450
Totals		$	289,040		$	289,040

On August 31, 2016, merchandise inventory was $25,900. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	92,400
Purchases discounts received		2,600
Purchases returns and allowances		5,000
Costs of transportation-in		4,500

Required:

1. Prepare closing entries as of August 31, 2017 (the perpetual inventory system is used).

• Record the entry to close the income statement accounts with credit balances.
• Record the entry to close the income statement accounts with debit balances.
• Record the entry to close Income summary.
• Record the entry to close the dividends account.