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) $ 40,300
Other (noninventory) assets 63,830
Total liabilities $ 24,300
Common stock 17,520
Retained earnings 21,900
Dividends 8,300
Sales 226,400
Sales discounts 2,240
Sales returns and allowances 13,500
Cost of goods sold 73,100
Sales salaries expense 31,400
Rent expense—Selling space 8,500
Store supplies expense 1,900
Advertising expense 13,500
Office salaries expense 29,400
Rent expense—Office space 3,700
Office supplies expense 450
Totals $ 290,120 $ 290,120

Beginning merchandise inventory was $25,200. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 91,300
Purchases discounts received 3,000
Purchases returns and allowances 4,800
Costs of transportation-in 4,700

Required:
Prepare closing entries as of August 31 (the perpetual inventory system is used).