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

		Debit			Credit
Merchandise inventory		$	40,700
Other (noninventory) assets			57,940
Total liabilities					$	24,900
Common stock						15,520
Retained earnings						19,400
Dividends			8,500
Sales						225,400
Sales discounts			2,280
Sales returns and allowances			13,000
Cost of goods sold			74,000
Sales salaries expense			32,500
Rent expenseSelling space			8,500
Store supplies expense			1,400
Advertising expense			13,000
Office salaries expense			29,800
Rent expenseOffice space			3,200
Office supplies expense			400
Totals		$	285,220		$	285,220

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	$	91,500
Purchases discounts received		2,100
Purchases returns and allowances		4,900
Costs of transportation-in		4,800

Required:

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