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Valley Company's adjusted account balances from its general ledger 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. Adjusted Account balance Dobit Credit Merchandise inventory (ending) 5.44,000 Other (non-inventory) ants 176,000 Total llabilities $ 50,820 X. Valley, Capital 143.537 X. Valley, withdrawals 8.000 Sales 300,960 Sales discounts 4.605 Sales returns and allowance 19,863 Cost of goods sold 115,142 Sales salaries penso 41,232 Rent expense-Schling space 14,145 Store supplies expense 3,612 Advertising expense 25,582 QE Eice salaries expenso 37,620 Rent expense-office space 3,612 office supplies expense 1.204 Totals 5495,317 $495.317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cont of merchandise purchases Purebases discounts received Purebases returns and allowances Coste of transportation in $ 129,360 2,717 6,209 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transactions Journal entry worksheet 61 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits Date Credit General Journal Sales Income summary Debit 300,960 Aug 31 300,960 Record entry Clear entry View general Journal Journal entry worksheet 2 3 Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits Credit Date Debit 273,245 Aug 31 General Journal income summary Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expenso-Selling space Store supplies exponse Advertising expense Office salaries expense Rent expense Office space 19,863 115,842 41,232 14,145 3,612 25,582 37,620 14.145 1.204 Journal entry worksheet Record the entry to close income summary Note Enter debits before credits General Journal Credit Data Aug 31 Debit 82,199 Income summary K. Valley, Capital 82.199 Record entry Clear entry View general Journal MOM Journal entry worksheet Record the entry to close the Withdrawals account. Note: Enter debits before credits Credit Date Aug 31 General Journal K. Valley, Capital K. Valley, Withdrawals Debit 8,000 8.000 Record entry Clear entry View general Journal Nay

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