E5-6 The adjusted trial balance of Sang Company shows the following data pertaining to ales at the end of its fiscal year October 31, 2017: Sales Revenue $820,000, Freight-Out 16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000. Instructions (a) Prepare the sales section of the income statement. (b) Prepare separate closing entries for () sales revenue, and (2) the contra accounts to 0 0 sales revenue. E5-7 Tim Jarosz Company had the following account balances at year end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000, Sales Revenue $115,000,e Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of ( inventory Instructions determines that merchandise inventory on hand is $13,600. (a) Prepare the adjusting entry necessary as a result of the physical count. (b) Prepare closing entries. E5-8 Presented below is information relat ed to Hoerl Co. for the month of January 2017. F Insurance expense Salaries and wages expense Sales returns and allowances 12,000 20,000 ( 55,000 10,000 Ending inventory per perpetual records Ending inventory actually 21,600 Rent expense 21,000 Sales discounts 218,000 on hand 13,000 Cost of goods sold 380,000 Freight-out Instructions 7,000 Sales revenue for inventory