Flounder Company had the following account balances at year-end:

Cost of Goods Sold $64,510;

Inventory $$14,660;

Operating Expenses $29,240;

Sales Revenue $126,730;

Sales Discounts $1,140; and Sales Returns and Allowances $1,830.

A physical count of inventory determines that merchandise inventory on hand is $12, 760. 

Prepare closing entries.