Nathan Company has provided the following information: (1) Included in the physical count were inventory items billed to a customer FOB shipping point on 31 December 2019. The goods had a cost of $280 and had been billed at $400. The shipment was on Nathan's loading dock waiting to be picked up by the trucking company. (2) Goods returned by customers and held pending inspection in the returned goods area on 31 December 2019, were not included in the physical count. On 5 January 2020, the goods costing $260 were inspected and returned to inventory. Credit memos totaling $380 were issued to the customers on the same date. (3) On 3 January 2020, a monthly freight bill in the amount of $170 was received. The bill specifically related to merchandise purchased in December 2019, 30% of which was still in inventory at 31 December 2019. The freight charges had not been recorded at 31 December 2019. (4) Goods were shipped out on consignment on 15 December 2019, and were recorded as a sale at the sales price of $550. The consignee has not yet sold these items. Goods are sold at a markup of 10% on cost. The goods were not included in inventory. 6 Required: (a) Nathan's unadjusted balances on 31 December 2019, for Inventory, Accounts Payable, and Sales Revenue are provided in the three columns of the schedule below. Complete the schedule to provide the correct adjusted balances at 31 December 2019. Accounts Sales Inventory Payable Revenue Unadjusted balances $18,100 $9,000 $90,000 Item (1) ? ? Item (2) Item (3) 2 ? Item (4) Adjusted balances (11 marks) (b) Prepare the 31 December 2019 adjusting journal entry that Nathan would prepare to record the freight charges described in item (3) above. (4 marks)