Instructions Hahn Flooring Company uses a perpetual inventory, system. A. The inventory account has a balance of $1,333,150, while physical inventory indicates that $1,309,900 of merchandise is on hand. Assume any shrinkage is a normal amount. B. Sales returns of $125,000 and merchandise returns of $80,000 are estimated for the current year's sales. Journalize the December 31 adjusting entries based on the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Journal Journalize the December 31 adjusting entries. Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL ACCOUNTING FOUATION. ASSETS LIABILITIES DATE DESCRIPTION POST. REF. DEBIT CREDIT EQUITY Adjusting Entries 2 3 4 5 6 7