Problem 5-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3

Valley Companys adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expenseselling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative.

		Debit			Credit
Merchandise inventory (ending)		$	42,000
Other (noninventory) assets			43,880
Total liabilities					$	24,700
K. Valley, Capital						21,800
K. Valley, Withdrawals			8,900
Sales						225,700
Sales discounts			2,220
Sales returns and allowances			13,500
Cost of goods sold			73,100
Sales salaries expense			32,200
Rent expenseSelling space			8,200
Store supplies expense			1,900
Advertising expense			13,500
Office salaries expense			28,800
Rent expenseOffice space			3,600
Office supplies expense			400
Totals		$	272,200		$	272,200

Beginning merchandise inventory was $25,600. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases	$	92,100
Purchases discounts received		2,800
Purchases returns and allowances		4,600
Costs of transportation-in		4,800

Required:

Prepare closing entries as of August 31 (the perpetual inventory system is used).

Required:

Prepare closing entries as of August 31 (the perpetual inventory system is used).

Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet