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 $1,337,600, while physical inventory indicates that $1,301,400 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 b. Sales returns of $153,610 and merchandise returns of $53,290 are estimated for the current year's sales. If an amount box does not require an entry, leave it blank Dec. 31