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 Sales 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.

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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Cost of goods sold	5,090
Inventory		5,090

(b)

Prepare closing entries. (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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to close accounts with credit balances	enter a debit amount	enter a credit amount
enter an account title to close accounts with credit balances	enter a debit amount	enter a credit amount
(To close accounts with credit balances)
enter an account title to close accounts with debit balances	enter a debit amount	enter a credit amount
enter an account title to close accounts with debit balances	enter a debit amount	enter a credit amount
enter an account title to close accounts with debit balances	enter a debit amount	enter a credit amount
enter an account title to close accounts with debit balances	enter a debit amount	enter a credit amount
enter an account title to close accounts with debit balances	enter a debit amount	enter a credit amount
(To close accounts with debit balances)
enter an account title to close net income or loss	enter a debit amount	enter a credit amount
enter an account title to close net income or loss	enter a debit amount	enter a credit amount
(To close net income / (loss))