Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets $ 42, 800 59, 130 $ 25, 800 Total liabilities Common stock 16, 240 Retained earnings 20, 300 8, 800 Dividends Sales 226, 200 2, 260 13, 500 73, 000 32, 100 8, 300 1, 700 13, 500 29, 200 3, 800 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 450 $ 288, 540 288, 540 Totals Beginning merchandise inventory was $25,70O. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $92, 800 2, 900 4, 400 4, 600 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). Journal entry worksheet 1 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 1 2 4 Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Journal entry worksheet 1 2 4 Record the entry to close income summary. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal