Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows Credit Debit $ 41,000 61,650 $ 25, 100 16,000 20,000 8,400 225,600 Merchandise Inventory Other (noninventory) assets Total ilabilities Common stock Retained earnings Dividende Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Otice salaries expense Rent expense-office space office supplies expense Totals 2,250 12,500 74,300 31, 200 8,300 1,900 12,500 28,900 3,400 400 $286,700 $286.700 On August 31, 2017, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $93,000 2.600 4,900 4,800 Required: 1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used)