Answer Happy

[The following information applies to the questions displayed below.] Valley Company's adjusted account balances from its general ledger 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 Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Debit $39,000 156,000 Total liabilities $ 45,045 128,576 K. Valley, Capital 8,000 K. Valley, Withdrawals Sales: 266,760 Sales discounts 4,081 Sales returns and allowances Cost of goods sold 17,606 103,121 Sales salaries expense 36,546 12,538 3,201 22,675 Rent expense-Selling space Store supplies expense Advertising expense office salaries expense Rent expense-Office space office supplies expense Totals 33,345 3,201 1,067 $ 440,381 $ 440,381 Beginning merchandise inventory was $31,473. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $ 114,660 Purchases discounts received Purchases returns and allowances 2,408 5,504 3,900 Costs of transportation-in Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).