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, 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 Credit Debit $ 39,800 62,370 $ 24,900 16,240 20,300 8,800 226,900 Merchandise inventory (ending) Other (noninventory) 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 Totala 2,270 14,000 75,000 31, 100 8,000 1,500 12,500 29,000 3,500 500 $288, 340 $288,340 Beginning merchandise inventory was $25,700. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Beginning merchandise inventory was $25,700. 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 $92,200 2,800 4,900 4,600 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet 2 3 4 Record the entry to close the income statement accounts with credit balances Note: Enter debits before credits Date General Journal Debit Credit