3. Pathao company had the following balances at year end: Cost of goods sold $50,000, merchandise inventory $5000, operating expenses 19,000, sales $98,000, sales discount $1200 & sales returns and allowances $1700. A physical count of inventory determines that merchandise inventory on hand is $12,200. Instructions (a) Prepare the adjusting entry necessary as a result of the physical count. (b) Prepare closing entries (8 marks)