Cheyenne Company had the following account balances at year-end: Cost of Goods Sold $62,020, Inventory $17,320, Utilities Expense $29,150, Sales Revenue $121,470, Sales Discounts $1,380, and $ ales Returns and Allowances $1,890. A physical count of inventory determines that merchandise inventory on hand is $12,230. They use the perpetual inventory system. (a) Your answer is correct. Prepare the adjusting entry necessary as a result of the physical count. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Prepare closing entries. (Uist oll debit entries before credit enitries. Credit account titles are automatically indented when amoune is entered Do not indent manually. If no entry is required, select "No Entry" (ar the occount titles and enter O for the anounts)