On January 31, 2005, the unadjusted credit balance of the Allowance for Overvaluation of Inventories: Vermont Avenue Branch of the home office of Searl Company was $80,000.

The branch reported a net income of $60,000 for January 2005 and an ending inventory on January 31, 2005, of $81,000, at billed prices that included a markup of 50% on home office cost.

Prepare journal entries (omit explanations) for the home office of Searl Company on January 31, 2005, for the foregoing facts.