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 $1,331,500, while physical inventory indicates that $1,300,900 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 Cost of Goods Sold Inventory Feedback b. Sales returns of $201,510 and merchandise returns of $60,470 are estimated for the current year's sales. If an amount box does not require an entry, leave it blank. Dec. 31 Sales Customer Refunds Payable II II II II Estimated Returns Inventory Cost of Goods Sold Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 2042, for Edison Company follow: 2013 2012 $1,840,000 $1,470,000 Sales Total assets: Beginning of year End of year 760,000 640,000 840,000 760,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 2013 2012 Asset turnover b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable? Favorable