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Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows.

		Debit			Credit
Merchandise inventory		$	42,000
Other (noninventory) assets			61,920
Total liabilities					$	25,600
Common stock						15,920
Retained earnings						19,900
Dividends			8,300
Sales						225,200
Sales discounts			2,250
Sales returns and allowances			13,500
Cost of goods sold			72,200
Sales salaries expense			31,300
Rent expenseSelling space			8,700
Store supplies expense			1,500
Advertising expense			12,000
Office salaries expense			29,200
Rent expenseOffice space			3,400
Office supplies expense			350
Totals		$	286,620		$	286,620

On August 31, 2016, merchandise inventory was $25,300. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	91,100
Purchases discounts received		2,200
Purchases returns and allowances		4,800
Costs of transportation-in		4,800

Required:

1. Prepare closing entries as of August 31, 2017 (the perpetual inventory system is used).

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