This closet only needed 15 minutes, so it's now completely done. I sorted the towels and sheets. There are two shelves above the towels. I put all the beach towels on the top one and all the bath towels on this one.
I read a neat tip on Martha Stewart's website awhile ago. She suggests that you fold the top and bottom sheet together and store them inside the matching pillowcase. That way, the whole set is together and you won't have to search for each piece. I did this as much as I could. As the mismatched sheets that are on the beds now get washed and come out of the laundry, I'll put them with their mates.