Exercise 5-07 a-b (Part Level Submission) Sarasota Company had the following account balances at year-end: Cost of Goods Sold $63,520; Inventory 515,090; Operating Expenses $29,560; Sales Revenue $124,930; Sales Discounts 51,080; and Sales Returns and Allowances $1,000. A physical count of inventory determines that merchandise inventory on hand is $12,400. (a) Your answer is correct. Prepare the adjusting entry necessary as a result of the physical count. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Cost of Goods Sold 2690 Inventory Click if you would like to show Work for this question: Open Show Work Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Credit Debit Sales Revenue 124930 124930 Income Summary (To close accounts with credit balances) Income Summary 95960 Cost of Goods Sold 63520 Operating Expenses 29560 Sales Discounts 1080 Sales Returns and Allowances 1800 (To close accounts with debit balances) X (To dose net income / (loss List of Accounts Exercise 5-07 a-b (Part Level Submission) Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Advertising Expense Buildings Cash Casuality Loss from Vandalism Cost of Goods Sold Depreciation Expense Dividend Revenue Equipment Freight-In Freight-Out Income Summary Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Loss on Disposal of Plant Assets Maintenance and Repairs Expense Notes Payable Operating Expenses Owner's Capital Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Purchase Discounts Purchase Returns and Allowances Purchases Rent Expense Salaries and Wages Expense Salaries and Wages Payable Salaries and Wages Payable Sales Commissions Expense Sales Commissions Payable Sales Discounts Sales Returns and Allowances Sales Revenue Supplies Supplies Expense Unearned Service Revenue Utilities Expense