3 Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 1.27 poirts Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows Merchandise inventory Other (noninventory) assets Total 1iabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense Selling space Store supplles expense Advertising expense Office salaries expense $ 41,000 130. 400 eBook $ 25, 000 10. 000 94 550 8, 000 Print 225. 600 2,260 12,000 74.500 32,000 8,000 1, 500 13,000 28,500 3,600 400 Office supplies expense Totals 355, 150 $ 355, 150 On August 31, 2016, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs $ Invoice cost of merchandi se purchases Purchases discounts recelved Purchases returns and allowances Costs of transportation-in 92. 000 2.000 4. 500 4. 600 Required: 1. Prepare closing entries as of August 31, 2017 (the perpetual inventory system is used)