ES.6 (LO 4, 5) The adjusted trial balance of Tsai Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2020: Sales Revenue $820,000, Freight-Out $16,000, Sales Returns and Allowances $25,000, and Sales Discounts $13,000. Prepare sales section and closing entries Instructions Prepare the sales section of the income statement. B. Prepare separate closing entries for (1) sales revenue, and (2) the contra accounts to sales revenue. Prepare adjusting and closing entries ES.7 (LO 4) Juan Morales 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, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that mer- chandise inventory on hand is $13,900. Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries. Prepare adjusting and closing entries E5.8 (LO 4) Presented below is information related to Garland Co. for the month of January 2020. S 12,000 20,000 Insurance expense Ending inventory per perpetual records Ending inventory actually $ 21,600 Rent expense Salaries and wages expense 55,000 21,000 218,000 7,000 Sales discounts Sales returns and allowances 10,000 on hand Cost of goods sold Freight-out 13,000 Sales revenue 380,000 Instructions a. Prepare the necessary adjusting entry for inventory b. Prepare the necessary closing entries. Prepare a multiple-step income state- ment and calculate profitability. E5.9 (LO 5) Presented below is information for Furlow Company for the month of March 2020. $ 32,000 8,000 13,000 380,000 $212,000 Rent expense Cost of goods sold Freight-out Insurance expense Salaries and wages expense 7,000 6,000 58,000 Sales discounts Sales returns and allowances Sales revenue Instructions a. Prepare a multiple-step income statement b. Compute the gross profit rate