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

		Debit			Credit
Merchandise inventory		$	42,100
Other (noninventory) assets			63,270
Total liabilities					$	25,700
Common stock						17,440
Retained earnings						21,800
Dividends			8,300
Sales						225,500
Sales discounts			2,270
Sales returns and allowances			12,000
Cost of goods sold			74,500
Sales salaries expense			31,700
Rent expenseSelling space			8,900
Store supplies expense			1,900
Advertising expense			13,000
Office salaries expense			28,400
Rent expenseOffice space			3,700
Office supplies expense			400
Totals		$	290,440		$	290,440

On August 31, 2016, merchandise inventory was $25,600. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	92,700
Purchases discounts received		2,300
Purchases returns and allowances		4,400
Costs of transportation-in		5,000

Required:

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

View transaction list Journal entry worksheet 2 3 1 4 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal 1. Prepare closing entries as of August 31, 2017 (the perpetual inventory system is used). Journal entry worksheet 1 2 3 4 Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. General Journal Date Debit Credit Aug 31 View transaction list Journal entry worksheet