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

		Debit			Credit
Merchandise inventory		$	41,200
Other (noninventory) assets			59,640
Total liabilities					$	24,900
Common stock						17,280
Retained earnings						21,600
Dividends			8,100
Sales						225,500
Sales discounts			2,290
Sales returns and allowances			13,500
Cost of goods sold			74,700
Sales salaries expense			32,400
Rent expenseSelling space			8,300
Store supplies expense			1,900
Advertising expense			14,000
Office salaries expense			29,600
Rent expenseOffice space			3,300
Office supplies expense			350
Totals		$	289,280		$	289,280

On August 31, 2016, merchandise inventory was $25,300. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	92,900
Purchases discounts received		2,300
Purchases returns and allowances		4,700
Costs of transportation-in		4,700

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.