Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the company contained the following information:

Account	Debit		Credit
Merchandise inventory, 7/1/17	32,700
Sales			387,000
Sales returns	12,700
Purchases	247,000
Purchase discounts			6,700
Purchase returns			10,700
Freight-in	18,400

In addition, you determine that the June 30, 2018, inventory balance is $40,700. Required: 1. Prepare the year-end adjusting entry to record cost of goods sold.