Problem 4-4A Preparing closing entries and interpreting informatio C2, P3 Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Merchandise inventory Other (non inventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense office salaries expense Rent expense-Office space Office Supplies expense Totals Debit Credit $ 41,000 130,400 $ 25,000 10,000 94,550 8,000 225,600 2,250 12,000 74,580 32,eee 8,888 1,500 13,000 28,580 3,600 400 $355,150 $355,150 On August 31, 2016, merchandise inventory was $25.400. Supplementary records of merch August 31, 2017. 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 4,680 Required: 1. Prepare closing entries as of August 31, 2017 (the perpetual inventory system is used). View transaction list Journal entry worksheet Journal entry worksheet 1 2. 3 > Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Journal entry worksheet