Presented is information related to Croce Yogurt for the month of January 2004. LO6 Ending inventory per Salary expense $ 61,000 perpetual records $ 21,600 Sales discounts 8,000 Ending inventory actually Sales returns and allowances 13,000 on hand 21,200 Sales 350,000 Cost of goods sold 208,000 Freight-out 7,000 Insurance expense 12,000 Rent expense 20,000 Instructions

(a) Prepare the necessary adjusting entry for inventory.

(b) Prepare the necessary closing entries.