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, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 39,700 46,840 $ 24,700 19,300 8,600 227,000 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals 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 2,210 12,500 76,100 31,200 8,400 1,200 12,000 28,300 3,500 450 $ 271,000 $ 271,000 Beginning merchandise inventory was $25,800. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $92,900 2,900 4,700 4,700 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. General Journal Debit Credit Date Aug 31 Record entry Clear entry View general journal Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). Journal entry worksheet Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. General Journal Debit Credit Date Aug 31 View transaction list Journal entry worksheet 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 View transaction list Journal entry worksheet