Valley Companys adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

		Debit			Credit
Merchandise inventory (ending)		$	40,100
Other (noninventory) assets			64,080
Total liabilities					$	25,200
Common stock						16,080
Retained earnings						20,100
Dividends			8,100
Sales						226,000
Sales discounts			2,200
Sales returns and allowances			12,000
Cost of goods sold			74,600
Sales salaries expense			32,000
Rent expenseSelling space			8,700
Store supplies expense			1,700
Advertising expense			12,000
Office salaries expense			28,100
Rent expenseOffice space			3,400
Office supplies expense			400
Totals		$	287,380		$	287,380

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

Invoice cost of merchandise purchases	$	91,200
Purchases discounts received		2,500
Purchases returns and allowances		4,200
Costs of transportation-in		4,800

Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).

View transaction list Journal entry worksheet 2 3 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