Valley Companys 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 expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.

Adjusted Account Balances Debit Credit

Merchandise inventory $($ending$)$ $ $41,000$

Other $($non$-$inventory$)$ assets $164,000$

Total liabilities $ $47,355$

Common stock $79,369$

Retained earnings $55,191$

Dividends $8,000$

Sales $280,440$

Sales discounts $4,291$

Sales returns and allowances $18,509$

Cost of goods sold $108,210$

Sales salaries expense $38,420$

Rent expenseSelling space $13,181$

Store supplies expense $3,365$

Advertising expense $23,837$

Office salaries expense $35,055$

Rent expenseOffice space $3,365$

Office supplies expense $1,122$

Totals $ $462,355$ $ $462,355$

Beginning merchandise inventory was $$33,087.$ Supplementary records of merchandising activities for the year ended August $31$ reveal the following itemized costs.

Invoice cost of merchandise purchases $ $120,540$

Purchases discounts received $2,531$

Purchases returns and allowances $5,786$

Costs of transportation$-$in $3,900$

Required:

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

Answer rating: 100% (QA)

Answer To prepare the closing entries for Valley Company as of August 31 the fiscal yearend we will ... View the full answer