Problem 5-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 Valley Company's adjusted trial balance on August 31,2017, its fiscal year-end, follows. Debit credit $ 42, 700 42, 840 Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdravals 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 s 24,300 21,000 8, 900 225, 300 2, 260 13, 500 72, 200 31,400 9,000 1,400 13, 500 29, 000 3, 500 400 $270, 600 $270, 600 On August 31, 2016, merchandise inventory was $25,800. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Problem 5-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 Valley Company's adjusted trial balance on August 31,2017, its fiscal year-end, follows. Debit credit $ 42, 700 42, 840 Merchandise inventory Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdravals 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 s 24,300 21,000 8, 900 225, 300 2, 260 13, 500 72, 200 31,400 9,000 1,400 13, 500 29, 000 3, 500 400 $270, 600 $270, 600 On August 31, 2016, merchandise inventory was $25,800. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs