Garcia Corp. has the following normal account balances at its 12/31/21 year-end, prior to adjusting entries being made:

Inventory balance at 1/1/20	$ 75,000
Purchases discounts	30,000
Purchase returns and allowances	15,000
Freight-in Expense	9,000
Purchases	2,000,000

Additional Information: Per a physical inventory count, the accountant has determined that inventory on hand at the end of the year is $100,000. Garcia uses the periodic inventory system.

Required: In the journal below, prepare the adjusting entry to record the cost of goods sold for 2021. Special Note: You may adjust the inventory account using either of the two methods discussed in class.

		Debit	Credit
12/31/21