*Exercise 5-7 (Part Level Submission) Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $63,390, Inventory $16,270, Operating Expenses $29,540, Sales Revenue $125,610, Sales Discounts $1,460, and Sales Returns and Allowances $1,940. A physical count of inventory determines that merchandise inventory on hand is $12,790. *(a) 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