Adjusting entries Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following: a. The inventory account has a balance of $1,339,300, while physical inventory indicates that $1,300,100 of merchandise is on hand. Assume any shrinkage is a normal amount. If an amount box does not require an entry, leave it blank. Dec. 31 38 b. Sales returns of $242,620 and merchandise returns of $56,830 are estimated for the current year's sales. If an amount box does not require an entry, leave it blank. Dec. 31 B 88