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 $1,335,000, while physical inventory indicates that $1,301,900 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 Footback Check My Wort a. Inventory shrriage is recorded by decreasing merchandise inventory and increasing cost of merchandise sold for the diference between the perpetual inventory records and the inventory on hand. b. Sales returns of $96,140 and merchandise retures of $75,390 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 Estimated Returns Inventory Cost of Goods Sold Fotback