Adjusting entries

Hahn Flooring Company uses a perpetual inventory system. Journalize the December 31 adjusting entries based upon the following:

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a. The inventory account has a balance of $1,331,100, while physical inventory indicates that $1,300,400 of merchandise is on hand. Assume any shrinkage is a normal amount. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Dec. 31	Accounts PayableAccounts ReceivableCashCost of Goods SoldInventory	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashCost of Goods SoldInventory	- Select -	- Select -

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b. Sales refunds and allowances of $244,480 and merchandise returns of $59,770 are estimated for the current year's sales. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Dec. 31	Accounts PayableAccounts ReceivableCustomer Refunds PayableMerchandise InventorySales	- Select -	- Select -
	Accounts PayableAccounts ReceivableCustomer Refunds PayableMerchandise InventorySales	- Select -	- Select -
blank	Accounts PayableAccounts ReceivableCashCost of Goods SoldEstimated Returns Inventory	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashCost of Goods SoldEstimated Returns Inventory	- Select -	- Select -