$|$ Journal

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.