I Required information Use the following information for the Problems below. [The following information applies to the questions displayed below] Valley Company's 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 expense-selling space, store supplies expense, and advertising expense It categorizes the remaining expenses as general and administrative Adjusted Account Balances Herchandise inventory (ending). Other (non-inventory) assets Total liabilities Common stock Retained earnings Dividends Sales Debit $ 41,000 130,400 Credit $ 25,000 10,000 94,550 8,000 225,600 Sales discounts 2,250 Sales returns and allowances 12,000 Cost of goods sold 74,500 Sales salaries expense 32,000 Rent expense-selling space 8,000 Store supplies expense 1,500 Advertising expense 13,000 office salaries expense 28,500 Rent expense-office space 3,600 Office supplies expense 400 Totals $355,150 $355,150 Beginning merchandise inventory was $25,400 Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-In $92,000 2,000 4,500 4,600 Problem 4-4A (Static) Preparing closing entries and interpreting information about discounts and returns LO C1, P3 Problem 4-4A (Static) Preparing closing entries and interpreting information about discounts and returns LO C1, P3 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used) View transaction list Journal entry worksheet 1 2 3 4 Record the entry to close the income statement accounts with credit balances Nate Enter debits before credits Date Aug 31 General Journal Debit Credit Recorder Clear entry View general journal