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

		Debit			Credit
Merchandise inventory		$	42,700
Other (noninventory) assets			63,960
Total liabilities					$	25,900
Common stock						16,720
Retained earnings						20,900
Dividends			8,200
Sales						226,200
Sales discounts			2,260
Sales returns and allowances			12,500
Cost of goods sold			73,700
Sales salaries expense			31,400
Rent expenseSelling space			8,900
Store supplies expense			2,000
Advertising expense			12,500
Office salaries expense			28,000
Rent expenseOffice space			3,200
Office supplies expense			400
Totals		$	289,720		$	289,720

On August 31, 2017, merchandise inventory was $25,800. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	92,800
Purchases discounts received		2,200
Purchases returns and allowances		4,600
Costs of transportation-in		4,600

Required:

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

Question formatting copied down below:

Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-selling space Store supplies expense Advertising expense office salaries expense Rent expense office space office supplies expense Totals Debit Credit $ 42,780 63.960 $ 25,900 16,72e 22,980 8.200 226, 228 2.260 12,520 73,72 31,420 8.98 2.ee 12.500 28, ese 3,280 4ee $289,72 $289,720 On August 31, 2017, merchandise inventory was $25,800. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $92,00 2,200 4,600 4,6ee Required: 1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used). Required: 1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used). Journal entry worksheet 1 View transaction list 2 2 3 4 Record the entry to close the income statement accounts with debit balances. Journal entry worksheet Record the entry to close income summary. Record the entry to close the dividends account. Note: Enter debits before credits. Note: Enter debits before credits General Journal Debit Credit Date Aug 31 General Journal Debit Credit Date Aug 31 Record entry Clear entry View general Journal Racord entry Clear entry View general Journal