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 $$1,337,500,$ while physical inventory indicates that $$1,301,800$ 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 refunds and allowances of $$151,470$ and merchandise returns of $$67,210$ are estimated for the current year's sales. If an amount box does not require an entry, leave it blank.

Dec. $31.$

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