Accounting principles chapter 5

Tim jarosz Company had the following account balances at year-end: Cost of Goods Sold $60,000; Inventory $15,000; Operating Expenses $29,000; Sales Revenue $115,000; Sales Discounts $1,200; and Sales Retunes and Allowances $1,700. A physical count of inventory that merchandise inventory on hand is $13,600.

A) Prepare the adjusting entry necessary as a result of the physical count.

B) Prepare closing entries.