Valley Companys adjusted trial balance on August 31, 2018, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	41,000
Other (noninventory) assets			130,400
Total liabilities					$	25,000
Common stock						10,000
Retained earnings						94,550
Dividends			8,000
Sales						225,600
Sales discounts			2,250
Sales returns and allowances			12,000
Cost of goods sold			74,500
Sales salaries expense			32,000
Rent expenseSelling space			8,000
Store supplies expense			1,500
Advertising expense			13,000
Office salaries expense			28,500
Rent expenseOffice space			3,600
Office supplies expense			400
Totals		$	355,150		$	355,150

On August 31, 2017, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs.

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

Required:

1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used).