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In: AccountingValley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.DebitCreditMerchandise...Valley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.DebitCreditMerchandiseinventory$40,500Other (noninventory) assets62,090Total liabilities$25,500Common stock17,200Retained earnings21,500Dividends8,800Sales226,200Sales discounts2,210Sales returns andallowances13,000Cost of goods sold74,300Sales salaries expense32,800Rent expense—Selling space8,800Store supplies expense1,800Advertising expense14,000Office salaries expense28,200Rent expense—Office space3,500Office supplies expense400Totals$290,400$290,400On August 31, 2016, merchandise inventory was $25,100.Supplementary records of merchandising activities for the yearended August 31, 2017, reveal the following itemized costs.Invoice cost of merchandisepurchases$91,300Purchases discountsreceived2,200Purchases returns andallowances4,300Costs of transportation-in4,900Required:1. Prepare closing entries as of August 31,2017 (the perpetual inventory system is used).