Kennedy Company had the following account balances at year-end: cost of goods sold $85,000; inventory $15,000; operating expenses $39,000; sales revenue $144,000; sales discounts $1,600; and sales returns and allowances $2,300. A physical count of inventory determines that inventory on hand is $14,400. Your answer is correct: Prepare the adjusting entry necessary as a result of the physical count. (Credit account tities are automatically indented when the amount is entered. Do not indent manually) Prepare closing entries. (Credit occount ttbes ore outomotically lindented when the amount is entered. Do not indent manually) Question 4 of 6 1.5/3 (To close credit balance accounts.) (To close accounts with debit balances.) (To close income summary.) eTextbook and Media