Exercise 5-7 Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $63,970, Inventory $15,740, Operating Expenses $31,040, Sales Revenue $125,200, Sales Discounts $1,250, and Sales Returns and Allowances $1,670. A physical count of Inventory determines that merchandise inventory on hand is $12,430. 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.) A nt Titles Esplanation SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (To close accounts with credit balances To co net income ) SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 4 used