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) $39,900 Other (noninventory) assets 60,180 Total liabilities $25,300 Common stock 17,040 Retained earnings 21,300 Dividends 8,700 Sales 226,100 Sales discounts 2,260 Sales returns and allowances 13,000 Cost of goods sold 76,100 Sales salaries expense 32,800 Rent expense—Selling space 8,900 Store supplies expense 1,600 Advertising expense 12,500 Office salaries expense 29,800 Rent expense—Office space 3,500 Office supplies expense 500 Totals $289,740 $289,740 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$92,900 Purchases discounts received 2,800 Purchases returns and allowances 4,700 Costs of transportation-in 4,800 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used)